PFIN 7:STUDENT EDITION-MINDTAP (1 TERM)
7th Edition
ISBN: 9780357033647
Author: Billingsley
Publisher: CENGAGE L
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Chapter 10, Problem 2FPE
Last year, Thea and Rory Brown bought a home with a dwelling replacement value of $350,000 and insured it (via an HO-5 policy) for $310,000. The policy reimburses for actual cash value and has a $500 deductible, standard limits for coverage C items, and no scheduled property. Recently, burglars broke into the house and stole a two-year-old television set with a current replacement value of $600 and an estimated useful life of eight years. They also took jewelry valued at $1,850 and silver flatware valued at $3,000.
- a. If the Browns’ policy has an 80 percent co-insurance clause, do they have enough insurance?
- b. Assuming a 50 percent coverage C limit, calculate how much the Brown family would receive if they filed a claim for the stolen items.
- c. What advice would you give the Brown family about their homeowner’s coverage?
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Where discount factors are required, use only the four decimals present value tables (Appendix 1 and 2) that appear after the formula sheet.
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INFORMATION
The following information relates to two capital expenditure…
Use the information provided below to prepare the following for May and June 2025:
Debtors Collection Schedule
Cash Budget.
The following information was provided by Lewis Traders:1. An unfavourable bank balance of R40 000 is expected on 30 April 2025. 2. Budgeted credit sales for April to June 2025 are as follows:
April
R420 000
May
R372 000
June
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Prepare the Pro Forma Statement of Financial Position as at 31 December 2025 from the information provided below.
Info:
The budgeted Statement of Financial Position of Candyland Ltd as at 31 December 2024 is as follows:
Candyland Ltd
Statement of Financial Position as at 31 December 2024
R
ASSETS
Non-current assets
2 500 000
Fixed/Tangible assets
2 500 000
Current assets
2 250 000
Inventory
1 500 000
Accounts receivable
625 000
Cash
125 000
Total assets
4 750 000
EQUITY AND LIABILITIES
Equity
3 500 000
Ordinary share capital (150 000 shares)
3 000 000
Retained earnings
500 000
Non-current liabilities
750 000
Long-term loan: Barbie Bank
750 000
Current liabilities
500 000
Accounts payable
500 000
Total equity and liabilities
4 750 000
Candyland Ltd provided the following additional financial data to assist in the preparation of the Pro Forma…
Chapter 10 Solutions
PFIN 7:STUDENT EDITION-MINDTAP (1 TERM)
Ch. 10 - Prob. 1LOCh. 10 - Identify the types of coverage provided by...Ch. 10 - Prob. 3LOCh. 10 - Prob. 4LOCh. 10 - Prob. 5LOCh. 10 - Choose a property and liability insurance agent...Ch. 10 - Prob. 1FPECh. 10 - Last year, Thea and Rory Brown bought a home with...Ch. 10 - Prob. 3FPECh. 10 - Prob. 4FPE
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