Answer:
We first need to find out the present value of each $1,000 bond and then we can figure out how many of these bonds we require to raise $27 million
The n of payments is 15*2 because semi annual payments for 15 years so our N will be 30
The YTM is 7.70/2 because of semi annual payments = 3.85
The Face value is of 1,000 so FV= 1,000
The payments our 1000*0.066=66 divided by 2 because semi annual payments so PMT= 33
We will put these values in a financial calculator to compute the PV of a $1000 bond.
PV= 903
So now we know that the company can get $903 for each $1,000 bond as the bonds present value is 903.
Now in order to find out how many bonds need to be issued to raise 27 million we will divide 27 million by 903, as 903 is the amount we can raise by issuing a single bond.
27,000,000/903=29,900.3 so 29,901
The company will have to issue 29,901 bonds of face value $1,000 to raise $27 million
Explanation:
Answer:
The correct answer is the second option: Protecting the privacy of knowing and unknowing customers.
Explanation:
Nowadays the use of the currents social medias is beginning to increase in the area of the marketing and the business world due to the wide range of communication that it can has, that is, the ability of those medias to reach the target audience and therefore to communicate the message established in the marketing mix. Moreover, due to the fact that a lot a people are reached during that process, most of them unknown customers, the most important concern for the companies regarding social and ethical issues is the protection of the privacy of those customers because personal information is given when making a purchase or just signing in the companies' websites.
B. The NPV is positive, so invest.
C. The NPV is greater than the NOI, so invest.
D. The GPI is greater than the NOI, so invest.
E. The NPV is greater than the OPX, so invest.
Answer:
Option B is correct.
The NPV is positive, so invest.
Explanation:
Year Cash Flow
0 -160000
1 8995
2 8995
3 8995
4 205995
$13,512.46
Answer:
The cash-basis net income and accrual-basis net income for the year is $19,500 and $22,800 respectively.
Explanation:
The computation is shown below:
1. Net income under cash basis:
= Received cash from customers - paid cash for salaries
= $43,000 - $23,500
= $19,500
2. Net income under accrual basis:
= Cash received - salary paid
where,
Cash received = Cash owed at the end of the year + cash received - cash owed at the beginning of the year
= $6,600 + $43,000 - $1,000
= $48,600
And, the salary paid = salary owed at the end of the year + salary paid - salary owed at the beginning of the year
= $5,600 + $23,500 - $3,300
= $25,800
Now put these values to the above formula
So, the value would equal to
= $48,600 - $25,800
= $22,800
1. Cash basis in as accounting method that recognizes revenues and expenses only when the cash is received or paid out.
Net income under cash basis = Received cash from customers - Cash paid for salaries
Net income under cash basis = $43,000 - $23,500
Net income under cash basis = $19,500
2. Accrual basis is as accounting method where accounting transactions are recorded for revenue when earned and expenses when incurred.
Net income under accrual basis = Cash received - Salary paid
Net income under accrual basis = (Cash owed at the end of the year + Cash received - Cash owed at the beginning of the year) - (Salary owed at the end of the year + Salary paid - Salary owed at the beginning of the year)
Net income under accrual basis = ($6,600 + $43,000 - $1,000) - ($5,600 + $23,500 - $3,300)
Net income under accrual basis = $48,600 - $25,80
Net income under accrual basis = $22,800
See similar question & solution here
Answer: Cash cycle =24.35 days
Explanation:
Cash cycle=Days in inventory+Days in receivables-Days in payables
Days in inventory=365/inventory turnover
=365/18.9
= 19.3121693 days
Days in receivables=365/receivables turnover
=365/9.7
=37.628866days
Days in payables=365/payables turnover
=365/11.2
=32.5892857 days
Therefore, Cash cycle=Days in inventory+Days in receivables-Days in payables
= 19.3121693 days+ 37.628866 days - -32.5892857days
=24.3517496days
Rounded up to 24.35 days
The cash cycle of Franklin, Inc., considering its inventory turnover, receivables turnover, and payables turnover, is approximately 24.35 days.
In order to calculate the cash conversion cycle for Franklin, Inc., we need to consider three aspects: Inventory turnover, payables turnover, and receivables turnover.
Firstly, we need to convert these turnovers into days. That's achieved by dividing 365 by the turnover ratio for each component.
The converted days for each component will be:
The Cash Conversion Cycle is then computed as follows: Cash Conversion Cycle = Inventory Days + Receivables Days - Payables Days = 19.31 + 37.63 - 32.59 ≈ 24.35 days
So, the cash cycle of Franklin, Inc. is approximately 24.35 days.
1.Use the direct write-off method to journalize Peterson’s write-off of the uncollectible receivables.
2.What is Peterson’s balance of Accounts Receivable at February 28, 2014?
Answer:
1) Bad debt expense (Debit) 1,800
Accounts receivable (Credit) 1,800
2) $12,200
Explanation:
1) Write off method of accounting directly credits accounts receivable instead of creating a provision for doubtful debt. Therefore following entry is recognized
Bad debt expense (Debit) 1,800
Accounts receivable (Credit) 1,800
2) Ledger balance of accounts receivable is $ 12,200 calculated as follows:
Opening Balance (31 January 2014) 15,000
Add: Sales on account during February 18,000
Less: Collection during February (19,000)
Less: Written off (1,800)
Balance at 28 February 2014 $12,200
Answer:
Total cash flow to stockholders 13,320
Explanation:
We should consider the actual cash paid by the firm in favor of the stockholders. Net income doesn't represent cashflow is the amount earned by the company but a portion of it is reinvested or hold by the firm. What it matter for cashflwo arethe cash dividends and treasury stock as these are actual cashflow in going into the stockholders pockets
from dividends 4,535
from stock repurchase 8,785
Total cash flow to stockholders 13,320