An AA-rated, 1-year commercial loan to a firm with the following financial statement information (in millions of dollars): Cash Assets Accounts receivables Inventory Plant and equipment Total assets $ 40 120 215 1,100 $1,475 Liabilities and Equity Accounts payable Notes payable Accruals Long-term debt Equity (ret. earnings = $200) Total liabilities and equity $ 55 60 75 550 735 $1,475 Also assume sales = $1,275, cost of goods sold = $930, taxes = $70, interest payments = $100,
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- 5. The following list of balances obtained from Agro Trading as at 31 July 2020. PARTICULARS RMCash in hand 100Cash at bank 9,000Account receivable 12,840Inventory as at 1 June 2019 26,500Motor vehicles 14,000Plant and machinery 50,000Long term investment 10,000Freehold premises 147,500Account payable 16,50010% Mortgage on freehold premises 34,000Capital 219,840Purchases 128,900Wages and salaries 70,300Rates and taxes 1,000Interest on mortgage 1,700General expenses 2,000Carriage outwards 21,000Insurance premium 3,000Drawings 7,400Carriage inwards 600Advertising expenses 14,000Sales 250,000Sales returns 1,000Purchases returns 500Discount received 600Discount allowed 800Allowance for doubtful debt 200Inventory at 31 July 2020 was RM30,000.Required: i. Statement of Profit and Loss and Others Comprehensive Income for the year ended 31 July 2020.ii. Statement of Financial Position as 31 July 2020What are the forms and characteristics of hedge accounting Bank B granted on 1.10.20X1 to company D a loan of €200,000 for 10 years with a fixed interest rate of 3%. The loan will be serviced with equal semi-annual installments plus interest that will be paid every 31/3 and 30/09 of each year, while bank B prepares interim financial statements. Wanted:Make the journal entries for the years 20X1-20X2 for company B(for calculations use a period of 90 days for each quarter and 360 days for the year). Estimate the duration of Loan MBank Balance SheetCash = $ 50Loan M (7%, 6 years) = $200Deposit N (3 years, 2%) = $ 200Equity = $ 50Total Assets = $250Total Liabilities = $ 250 a. 3.1 years b. 4.1 years c. 5.1 years d. 6.1 years
- FRM. (Term=30 years, Note Rate = 5.25, Loan Amount = 800,000, Points=2) What is the FTL annual percentage rate (FTLAPR) that the lender must disclose to the borrower? O 5.375% ○ 4.750% O 4.875% O 7.000% O 6.905% O 7.011%Brothers Corporation borrows P70,000.00, annual interest rate of 19% is deducted in advance. What is the amount of proceeds the company will receive at the time of the loan and what is the effective interest rate choose the letter of the correct answera. P13,300.00 and 19%b. P26,700.00 and 19%c. P13,300 and 23.5%d. P23,300.00 and 19%e. P56,700.00 and 23.5%LO 10-5 Corporation E10-10 Calculating and Interpreting the Debt-to-Assets Ratio and Times Interest Earned Ratio At May 31, 2019, FedEx Corporation reported the following amounts (in millions) in its financial statements: Total Assets Total Liabilities Interest Expense Income Tax Expense Net Income game Tot 1500 2019 $54,400 36,600 ainuoms 21000056 590 115 540 2018 $52,330 32,900 560 220 4,570
- The debt is amortized by the periodic payment shown Compute (a) the number of payments required to amortize the debt, (b) the outstanding principal at the time indicated Payment Interval 1 month Conversion Period quarterly Outstanding Principal After: dth payment Dobt Principal Debt Payment Interest Rate $17.000 $1.265 6% (a) The number of payments required to amortize the debt is (Round up to the nearest integer.) (b) The outstanding principal is s (Round the final answer to the nearest cent as needed Round all intermediate values to six decimal places as needed)Prepare the Statement of Financial Position as of 31 December 2019, for TT Resources Berhad. Account Payable Other Reserved Preferred Stock Mortgage Loan. RM 51,000 RM50,000 RM 46,200 RM 44,000 Common Stock Tax Payable Long-Term Financing Bank RM 41,000 RM 25,500 RM 66,000 RM 42,000 Additional Information: Investment Securities Equipment Retained Earnings Bond RM 5,000 RM 32,000 RM 90,000 RM 188,000 1. Land: RM 300,000 2. Inventories: RM40,000 3. Current Ratio: 1.5 Times 4. Cash & Banks = 35% of Currents Assets 5. Retained Earnings = 12% of Fixed Assets Accumulated Depreciation Cash RM30,000 Notes Payable Accrued Expenses RM 10,000 Prepayment RM 23,500 Account Receivable RM 18,800 RM 62,000 RM 35,000The following structure of interest rates is given: Term of Loan Interest Rate 1 year 3% 2 year 4% 5 year 6% 10 year 8% Your firm needs $2,000 to finance its assets. Three possible combinations of sources of finance are listed below: (1) (2) Assets $2,000 Liabilities $0 Assets $2,000 Liabilities $840 (a one-year loan) Equity $2,000 Equity $1,160 (3) Assets $2,000 Liabilities $840 (a 10-year loan) Equity $1,160 The firm expects to generate revenues of $2,550 and have operating expenses of $2,120. If the firm's tax rate is 40 percent, what is the return on equity under each choice? Round your answers to two decimal places. Choice 1: % Choice 2: % Choice 3: % During the second year, sales decline to $2,200 while operating expenses decline to $1,900. The structure of interest rates becomes: Term of Loan Interest Rate 1 year 5%…
- What is the journal entry to record (for both the debtor and creditor) for refinancing a loan for $600,000, 12%, 10 year note to $600,000, 5%, 10 year note?The following balance sheet is to be used to answer the questions below Yields for assets & liabilities shown in % in parentheses Assets $M Liabilities & Equity $M Cash & Cash Equivalents 85 Overnight Repurchase Agreements 650 1 - month Treasury Bills (3%) 125 5 - year Fixed-rate Debt (4.5%) 450 3 - month Commercial Paper (3.75 %) 175 2 - year Consumer Loans (4.25 %) 235 Equity 160 5-year Adjustable -Rate Mortgages (3.5% resetting semiannually) 540 5 - year Fixed rate Municipal Bonds (4%) 100 Total Assets 1260 Total Liabilities & Equity 1260 a. Calculate the firm's repricing gap over the following intervals: $M 30 Days 90 Days 2 Years b. Compute the impact over the next 90 days on net interest income under the following changes in interest rates $M +75bps -100bps c. Runoffs on consumer and mortgage loans over the next year above are $30M and $50M, respectively What would be the 1 - year repricing gap? $M d. Taking into account the effect of runoffs, what is the effect on net interest…Horizons plc had the following bank loans outstanding during the whole of 20X8 which form the company's general borrowings for the year: 10% loan repayable 20X9 Select one: 8% loan repayable 20Y2 a. £892,500 b. £425,000 C. £541,875 d. £305,625 Em 25 Horizons plc began construction of a qualifying asset on 1 May 20X8 and withdrew funds of £4.5 million on that date to fund construction. On 1 September 20X8 an additional £6 million was withdrawn for the same purpose. 75 Calculate the borrowing costs which can be capitalised in respect of this project for the year ended 31 December 20X8.