BUSINESS COLLEGE

Mountain High Ice Cream Company transferred $76,000 of accounts receivable to the Prudential Bank. The transfer was made with recourse. Prudential remits 90% of the factored amount to Mountain High and retains 10% to cover sales returns and allowances. When the bank collects the receivables, it will remit to Mountain High the retained amount (which Mountain estimates has a fair value of $6,600). Mountain High anticipates a $4,600 recourse obligation. The bank charges a 2% fee (2% of $76,000), and requires that amount to be paid at the start of the factoring arrangement. Mountain High has transferred control over the receivables, but determines that it still retains substantially all risks and rewards associated with them. Required: Prepare the journal entry to record the transfer on the books of Mountain High, considering whether the sales criteria under IFRS have been met.

Answers

Answer 1

Answer:

Answer:

Cash 66,880 debit

Due from factor 7,600 debit

Loss on factoring 6,120 debit

Accounts Receivables 76,000 credit

Recourse Liability 4,600 credit

Explanation:

Accounts receivable factored: 76,000

Cash received 90% of 76,000 = 68,400

less bank charge fee: 76,000 x 2% = 1,520

total: 66,880

Due from factoring = 76,000 x 10% 7,600

Recourse liability: 4600

The loss is calcualte bu difference:

The bank receives 76,000 dollars of Accounts receivables

It pays 66,880 It makes us assuma liability for 4,600

and potentially can paid up to 7,600

Net: 69,880‬

difference: 76,000 - 66,880 = 6,120

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A company is considering investing in a project that costs $300,000. The company uses straight-line depreciation and estimates that the project has a useful life of 10 years with no salvage value. This project is expected to produce NET INCOME of $42,000 each year. Assuming a minimum rate of return of 10%, indicate the NET PRESENT VALUE of this project. a. $41,928
b. $258,072
c. $120,000
d. $142,409

Answers

Answer:

NPV = $-41,928.18

Explanation:

Net present value is the present value of after tax cash flows from an investment less the amount invested.

NPV can be calculated using a financial calculator:

Cash flow in year 0 = $-300,000

Cash flow each year from year 1 to 10 = $42,000

I = 10%

NPV = $-41,928.18

To find the NPV using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

Answer:

b. $258,072

Explanation:

PERIOD CASH FLOW NET PRESENT VALUE

Year 1 $42,000 $(42000)/((1 + 0.10)^(1)) = 38181.82$

Year 2 $42,000 $(42000)/((1 + 0.10)^(2)) = 34710.74$

Year 3 $42,000 $(42000)/((1 + 0.10)^(3)) = 31555.22$

Year 4 $42,000 $(42000)/((1 + 0.10)^(4)) = 28686.57$

Year 5 $42,000 $(42000)/((1 + 0.10)^(5)) = 26078.70$

Year 6 $42,000 $(42000)/((1 + 0.10)^(6)) = 23707.91$

Year 7 $42,000 $(42000)/((1 + 0.10)^(7)) = 21552.64$

Year 8 $42,000 $(42000)/((1 + 0.10)^(8)) = 19593.31$

Year 9 $42,000 $(42000)/((1 + 0.10)^(9)) = 17812.10$

Year 10 $42,000 $(42000)/((1 + 0.10)^(10)) = 16192.82$

Total $258,071.83

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Answers

Answer:

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Explanation:

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In this wheel runout, it can't be measure with a dial indicator and neither can it occur only in the tire..

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Answers

Answer:

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Answers

Illegal multilevel marketing gimmick that promises commissions on one's own sales as well as on the sales of recruits called Pyramid scheme.

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These businesses, sometimes known as pyramid schemes, are prohibited in the United States.

What is multi level Marketing?

Distributors profit from the sale of tangible goods and from commissions on the purchases and sales of the distributors they have recruited through Multi-Level Marketing operations (MLMs), which are respectable business schemes.

Although they sometimes pass for MLMs, pyramid schemes are more concerned with the fees from recruiters than the money from product sales.

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the greatest constraint for a project is the . group of answer choices the schedule for the project the level of quality to be produced availability of the right resources at the right time cash flow for the organization

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What are Resources?

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Valley Designs issued a 90-day, 6% note for $96,000, dated April 22, to Bork Furniture Company on account. Assume 360 days in a year when computing the interest. a. Determine the due date of the note. July 9 b. Determine the maturity value of the note. $ Feedback The due date is the date the note is to be paid. Remember the interest rate is stated on an annual basis, while the term is expressed as days. Assume a 360 day year. The maturity value is the amount that must be paid at the due date of the note. c1. Journalize the entry to record the receipt of the note by Bork Furniture. If an amount box does not require an entry, leave it blank. Accounts Receivable-Valley Designs Allowance for Doubtful Accounts Feedback The account receivable must be removed from the books and the newly issued note receivable recorded. c2. Journalize the entry to record the receipt of payment of the note at maturity. If an amount box does not require an entry, leave it blank.