Current Assets 30,000,000 Current Liabilities 20,000,000
Fixed Assets 70,000,000 Notes Payable 10,000,000
Total Assets: 100,000,000 Long-term...
Current Assets 30,000,000 Current Liabilities 20,000,000
Fixed Assets 70,000,000 Notes Payable 10,000,000
Total Assets: 100,000,000 Long-term debt 30,000,000
Common Stock 1,000,000
Retained Earnings 39,000,000
Total liabilities & Equity 100,000,000
The notes payable are to banks, and the interest rate on this
debt is 7%, the same as the rate on new bank loans. These bank
loans are not used for seasonal financing but instead are part of
the company's permanent capital structure. The long-term debt
consists of 30,000 bonds, each...
On 1 October, Simon’s Solar Service borrows $150,000 from
Statewide Bank on a 3
month, 4%...
On 1 October, Simon’s Solar Service borrows $150,000 from
Statewide Bank on a 3
month, 4% note. What accrual entry must Simon’s Solar Service make
on 31 December before financial statements are prepared?
(Apologies that the journal entry is not formatted correctly)
Group of answer choices
Dr Interest Expense 1,500; Cr Interest Payable 1,500
Dr Interest Payable 1,500; Cr Interest Expense 1,500
Dr Interest Expense 6,000; Cr Interest Payable 6,000
Dr Interest Expense 1,500; Cr Notes Payable 1,500
On 1...
At the end of January 2005 (its first month of
operations in the dry cleaning business),...
At the end of January 2005 (its first month of
operations in the dry cleaning business), Botkin Corporation was
low on cash and needed a loan. The bank requested a balance sheet
as of January 31, 2005. The following information was
available:
Accounts
Payable
$ 9,000
Account Receivable
50,000
Buildings
170,000
Land
45,000
Stockholders’ Equity (Owner’s
Equity)
180,000
Salaries
Payable
5,000
Equipment
39,000
Notes
Payable
130,000
Cash
?
Required: Prepare a...
1.Long-term funds, short-term funds and shareholders’ interest
are detailed on the __________ side of the __________....
1.Long-term funds, short-term funds and shareholders’ interest
are detailed on the __________ side of the __________.
2. Insanity Sports (PTY) LTD wishes to evaluate their liquidity
and has provided you with the following information.
Current assets = R500 000
Current liabilities = R200 000
Total Inventory value = R50 000
Using the information provided, what would the acid-test ratio
results be for Insanity Sports (PTY) LTD?
3. Angie wants to determine the ability of her business to repay
its debts...
The following is taken from the Internal Revenue Service
website explaining potential tax incentives for investment...
The following is taken from the Internal Revenue Service
website explaining potential tax incentives for investment in
certain lower-income neighborhoods (Opportunity Zones). Explain how
these tax incentives might affect labor demand, full employment,
real wages, potential GDP, and both the short and long-run AS
curves
Opportunity zones are designed to spur economic development by
providing tax benefits to investors. First, investors can defer tax
on any prior gains invested in a Qualified Opportunity Fund (QOF)
until the earlier of the...
A company wishes to invest in its long-term future growth by
buying $100,000 of new manufacturing...
A company wishes to invest in its long-term future growth by
buying $100,000 of new manufacturing equipment. Which of the
following financing techniques should the company NOT employ in
order to pay for the new equipment?
Secure a 6 month note payable at a local bank.
Use internally generated cash on hand (retained earnings).
Sell new shares of the company’s common stock to investors.
Sell 20-year bonds payable.
b.
When the Bad Debt Percentage is calculated, what does management
want...