Business and Management
Showing 1477–1485 of 1826 results
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Assume a bank loan requires an interest payment of $85 per year…
$1.00Assume a bank loan requires an interest payment of $85 per year and a principal payment of $1,000 at the end of the loan’s eight-year life.
a. At what amount could this loan be sold for to another bank if loans of similar quality carried an 8.5 percent interest rate? That is, what would be the present value (PV) of this loan?
b. Now, if interest rates on other similar quality loans are 10 percent, what would be the PV of this loan?
c. What would be the PV of the loan if the interest rate is 8 percent on similar quality loans?
Analysis of Accounting events
$5.00Analyze the events listed below by indicating the accounts and amounts involved in the table below. In the column labeled “+/-“, select the sign that describes how the category is affected. If the event should not to be recorded as a transaction, leave it blank. A. Borrowed $760,000 cash, signing a promissory note. B. Bought a factory for $920,000, paying $230,000 in cash and signing a promissory note for $690,000. C. Rented equipment and issued a check for 6 months at $16,000 a month. D. Provided $135,000 of services and billed customers. E. Purchased $42,000 of supplies on account. F. Received a utility bill for the current period in the amount of $2,400. G. Raised sales prices on 200 units from $420 per unit to $500 per unit. H. Received a 50% deposit from a customer on a $32,000 order to be filled next month. Prepare general journal entries
$3.00a. To launch the company, Jenna Aracel, the owner, invested $250,000 cash, office equipment with a value of $9,800, and $70,000 of drafting equipment in exchange for common stock. b. The company purchased land worth $54,000 for an office by paying $8,800 cash and signing a long-term note payable for $45,200. c. The company purchased a portable building with $56,000 cash and moved it onto the land acquired in b. d. The company paid $4,000 cash for the premium on an 18-month insurance policy. e. The company completed and delivered a set of plans for a client and collected $6,100 cash. f. The company purchased $32,000 of additional drafting equipment by paying $11,000 cash and signing a long-term note payable for $21,000. g. The company completed $16,000 of engineering services for a client. This amount is to be received in 30 days. h. The company purchased $1,850 of additional office equipment on credit. i. The company completed engineering services for $24,000 on credit. j. The company received a bill for rent of equipment that was used on a recently completed job. The $1,445 rent cost must be paid within 30 days. k. The company collected $8,000 cash in partial payment from the client described in transaction g. l. The company paid $1,500 cash for wages to a drafting assistant. m. The company paid $1,850 cash to settle the account payable created in transaction h. n. The company paid $1,045 cash for minor maintenance of its drafting equipment. o. The company paid $9,500 cash in dividends. p. The company paid $2,200 cash for wages to a drafting assistant. q. The company paid $3,600 cash for advertisements on the Web during June. Required: 1. Prepare general journal entries to record these transactions. Tackling the free rider problem
$10.00Tackling the free rider problem
How might the free rider problem be tackled differently in the cases of:
A) paying for Australia’s national defense?
B) paying for public transport in any of the capital cities?
Post each transaction to the T accounts
$3.00Transactions
May 1 Terry purchased computer equipment for $8,400, paying $1,000 now, and issuing a promissory note for the balance; the note is due in monthly installments of $500 plus interest at 10% on the unpaid balance.
8 Terry records service revenue earned: $3,200 from cash customers; $12,000 for customers billed for completed services.
22 Common stock is issued for land with a fair value of $35,000.
31 An invoice for $1,200 is received from the company’s advertising agency for ads which were run on radio and TV during May; the invoice is due in 30 days.
Refer to the transactions for Terry Company.
Use the transactions incurred by the Terry Corporation to set up T accounts and post each transaction to the T accounts.
Paying for each formula unit
$1.00If you paid $1.54 for every 250 g ofNaHCO3, how much would you be paying for each formula unit?
The Car Loan Alternatives
$5.00This issue has three parts.
You are considering the purchase of new car. You have negotiated with the salesperson at the dealership and you can purchase the vehicle for $30,000. You have $8,000 that you can use as a down payment.
Prior to going into the dealership, you have set an absolute limit of $375 for the amount of monthly payments that you can make on the car. You are willing to finance over five years but you cannot exceed the payment of $375 per month. The dealer is willing to offer you financing at an annual rate of 6.5% for a 5-year loan. The dealer is willing to offer 5.5% financing on a 4-year loan.
CalculatorWeb’s loan calculator lets you specify any single item to calculate if the other four variables are specified. The value should be entered as whole numbers without commas.
1. Can you meet your payment restriction and finance the amount required for the car?
2. What is the maximum amount that you can borrow to meet your payment restriction if the loan is to be paid off in 5 years?
3. Suppose that you are limited to paying $375 per month but you want to pay the loan off in 4 years and not 5 years. What is the maximum amount that you can borrow
Financial Analysis of DPR Construction Inc. Case Study
$20.00
The Final Project will involve applying the concepts learned in class to an analysis of a company using data from its annual report. Using the concepts from this course, you will analyze the strengths and weaknesses of the company and write a report either recommending or not recommending purchase of the company stock.
Research Tip: The Mergent database in the Ashford University Library contains company profiles and financial information for publicly traded companies and their competitors. To access this database enter the Ashford Library and select Find Articles and More in the top menu panel. Next, select Databases A-Z and go to section M for Mergent. For help with using Mergent, use Mergent Online Quick Tips.
For help with reading an annual report access this handy guide from Money Chimp.
The completed report should include:
1. An introduction to the company, including background information.
2. A complete and thorough financial statement review.
3. Pro Forma financial statements (Balance Sheet and Income Statement) for the next fiscal year, assuming a 10 percent growth rate in sales and Cost of Goods Sold (COGS) for the next year.
4. Complete ratio analysis for the last fiscal year using at least two ratios from each of the following categories:
1. Liquidity
2. Financial leverage
3. Asset management
4. Profitability
5. Market value
5. A calculation of Return on Equity (ROE) using the DuPont system.
6. Assessment of management performance by calculating Economic Value Added (EVA).
7. A synopsis of your findings, including your recommendations and rationale for whether or not to purchase stock from this company.
Capital Budgeting Decisions: True/False Answers
$2.00- Both the net present value method and the internal rate of return method can be used as a screening tool in capital budgeting decisions.
- When considering a number of investment projects, the project that has the best payback period will also always have the highest net present value.
- When discounted cash flow methods of capital budgeting are used, the working capital required for a project is ordinarily counted as a cash outflow at the beginning of the project and as a cash inflow at the end of the project.
- Discounted cash flow techniques automatically provide for recovery of initial investment.
- When computing the project profitability index of an investment project, the investment required will include any investment made in working capital at the beginning of the project.
- If investment funds are limited, the net present value of one project should not be compared directly to the net present value of another project unless the initial investments in these projects are equal.
- In calculating payback where new equipment is replacing old equipment, any salvage value to be received on disposal of the old equipment should be deducted from the cost of the new equipment.
- In the payback method, depreciation is added back to net operating income when computing the net annual cash flow.
- The simple rate of return method is desirable because of its simplicity and the fact that it takes the time value of money into account.
- The present value of a cash flow will never be greater than the future dollar amount of the cash flow.
