During the past year, the company introduced several new product lines and raised the selling prices on a number of old product lines in order to improve its profit margin. The company also hired a new sales manager, who has expanded sales into several new territories. Sales terms are 2/10, n/30. All sales are on account. Required: 1. To assist in approaching the bank about the loan, Paul has asked you to compute the following ratios for both this year and last year: a. The amount of working capital. b. The current ratio. c. The acid-test ratio.
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- Question 1Aggressive Corporation approaches Matt Taylor, a loan officer for Oklahoma State Bank, seeking toincrease the company's borrowings with the bank from $100,000 to $150,000. Matt has an uneasyfeeling as he examines the loan application from Aggressive Corporation, which just completed itsfirst year of operations. The application included the following financial statements. AGGRESSIVE CORPORATIONIncome StatementFor the year ended December 31, 2018 Net sales $200,000Expenses:Cost of goods sold $110,000Operating expenses 50,000Depreciation expense 10,000Total expenses 170,000Net income $ 30,000 AGGRESSIVE CORPORATIONBalance Sheets For the year ended December 31, 2018/December 31, 2018 2018 2017 AssetsCurrent assets:Cash $ 10,000 $0Accounts receivable 60,000 0Inventory 40,000 0Long-term assets:Equipment 100,000 0Accumulated depreciation (10,000) 0Total assets $200,000 $0Liabilities and Stockholders' Equity Page 4 of 11 HI5020 Corporate Accounting Individual Assignment T2…Problem 25-7 (LG 25-4) Assume an Fl originates a pool of short-term real estate loans worth $39 million with maturities of five years and paying interest rates of 7 percent (paid annually). The loans are amortized. a. What is the average payment received by the FI (both principal and interest) if no prepayment is expected over the life of the loans? b. If the loans are converted into real estate certificates and the Fl charges a 150 basis points servicing fee (including insurance), what are the payments expected by the holders of the securities, if no prepayment is expected? (For all requirements, enter your answers in dollars not in millions. Do not round intermediate calculations. Round your answers to the nearest dollar amount.) × Answer is complete but not entirely correct. Average payment $ 9,511,737 b. Average payment $ 9,369,061 (X)Question Content Area Ralston Consulting, Inc., has a $48,000 overdue debt with Supplier No. 1. The company is low on cash, with only $13,440 in the checking account and does not want to borrow any more cash. Supplier No. 1 agrees to settle the account in one of two ways: Option 1: Pay $13,440 now and $45,600 when some large projects are finished, two years from today. Option 2: Pay $67,200 three years from today, when even larger projects are finished. Assuming that the only factor in the decision is the cost of money (10%). (Click here to see present value and future value tables) A. Calculate the present value of each option. Round your present value factor to three decimal places and final answer to the nearest dollar. Present value of Option 1 $fill in the blank 1 Present value of Option 2 $fill in the blank 2 B. Which option should Ralston choose?
- 12 Review the details of transaction for the purchase of a new primary residence and determine if the loan satisfies Fannie Mae guidelines? And why? notes: Closing Costs Prepaid Expenses Sales Price $ 160,000.00 $ 3,198.00 $3,050.00 Total $ 166,248.00 Mortgage Amount $ 152,000.00 $ 1,000.00 EMD Seller Pd Costs $6.400.00 Cash needed to close $6,848.00 Answer:39 Identify the correct formula to calculate the payment for a loan, where the rate is 6%, the loan amount is $2,000, and payments will be made monthly for six years. =PMT(6,6*12,2000) =PMT(.06/12,6*12,-2000) once=1/1b1435-b60f-40fb-ad57-d89084c2075a&launchCode=qe8mtdEeV5pWjPP2nq... =PMT(.06,6*12,-2000) =PMT(.06,6*12,2000)Problem 4:03 (Algorithmic) The employee credit union at State University is planning the allocation of funds for the coming year. The credit union makes four types of loans to its members. In addition, the credit union invests in risk-free securities to stabilize income. The various revenueproducing investments together with annual rates of return are as follows: Type of Loan/Investment Annual Rate of Return (%) Automobile loans 8 Furniture loans Other secured loans Signature loans Risk-free securities The credit union will have $1.4 million available for investment during the coming year. State laws and credit union policies impose the following restrictions on the composition of the loans and investments. . 10 11 . Risk-free securities may not exceed 30% of the total funds available for investment. Signature loans may not exceed 10% of the funds invested in all loans (automobile, furniture, other secured, and signature loans). • Furniture loans plus other secured loans may not exc…
- Drill Problem 15-4 (Algo) [LU 15-1 (3)] Use the following amortization chart: Selling price of home $ 88,000 Down payment $ 6,000 Principal (loan). $ 82,000 Rate of interest 6.0% Total cost of interest Answer is complete but not entirely correct. 95,120 Years 30 Payment per $1,000 $ 5.9955 What is the total cost of interest? Note: Do not round Intermediate calculations. Round your answer to the nearest whole dollar. Monthly mortgage payment $ 491.63Question 11 To purchase a new car, you borrow $20,000. The bank offers a 6-year loan at an interest rate of 3.25% compounded annually. If you make only one payment at the end of the loan period, repaying the principal and interest: Which time value factor should be used to solve this problem? O PWCAF O USCAF O SPCAF O USPWFT TWO Financial ToolsAHD oldagni Personal Finance Problem datoesulov prost limp5-9 Single-payment loan repayment Kelly borrows $30,000, to start a motor repair business in Hong Kong, that she must repay in a lump sum within the next 9 years. The interest rate is 10% annually compounded. There is no prepayment penalty. a. What amount will be due if she decides to repay the loan after 2 years? b. How much would she have to repay after 5 years? boinoq sizoga OS c. What amount is due at the end of 8 years? P5-10 Present value calculation Without referring to the preprogrammed function on your financial calculator, use the basic formula for present value, along with the given discount rate, r, and the number of periods, n, to calculate the present value of $1 in each of the cases shown in the following table. 2 Isno2199 meldo19 sonsni Discount rate, r Case 2 16 1006 agnivse s ni 19 Number of periods, n 4 A 2% lisunns babnuod 10 i 2 C 5 3 Gay S(B) Ted Bal 2 indicatos problems gnibnit uoy seU…
- QUESTION 1 AFBF Tech Limited plans to develop a new device for health monitoring. To fund for the development of this project, a loan worth of RM500, 000 has been made from MXX Bank. The interest charges by MXX Bank vary depending on the term of the loan. Given the rate of interest in Table 1. Term of the loan (t) 3 years Interest rate 10% compounded charged (%) monthly 5 years 6.6% compounded every 2 months 8 years 4.8% compounded quarterly Table 1 a) Advice which is the best term the company should sign for the loan by finding the instalment payment and the interest. Justify your answer. b) Hence, the company plans to settle all the outstanding arrears in one payment after 25 months the device being released into the market. How much is the payment will be according to the chosen term in (a)? c) Based on chosen term in (a), how much should the company pay on the tenth payment to settle the outstanding arrears if the company fails to pay the first ninth payment?View History Bookmarks Window Help 門 0 mortized Loans - 21516 MAT142 Topics In College Math DERIVITA Tiana Klughart SA Sarah negotiated a price of $25,280.00 for a new Toyota Camry Hybrid Sedan. She is prepared to give a down payment of 17%. Her credit union offered her a 7-year amortized loan for the remaining amount at a rate of 1.95%. How much money will be paid in interest? What will the monthly payment be? SA How much will the car cost, in total? $ $ D If she got a simple interest loan at the same interest rate and time, how much would she pay in interest? Holalalalalalal D2L 5.3 Amortized Loans - 21516 MAT142 Topics In College Math 7 a d2l.pima.edu #0 3D 5 MAT Chapter 5.3 Question 2 o > **** 100 (QUESTION 9 Accusoft Systems is offering small business owners a software package that keeps track of many accounting functions from bank transactions to sales invoices. The site license will cost $50,000 to install and will require a fee of $5000 every 3 months. If your company can save $13,500 every quarter and have the security of managing its books in-house, how long will it take for you to recover the investment at an interest rate of 12% per quarter? The time taken to recover the investment, (in quarters) Round to the nearest one (1) decimal place