Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
In December 2016, Bay Watch Company factored accounts receivable that had a book value of $500,000 to Spirit Bank, with recourse and estimates the fair value of the recourse obligation to be $10,000. Under the arrangement, Bay Watch transfers the $500,000 receivables to Klein, and Klein will remit 80% of the factored amount to Bay Watch in cash. Klein will retain the remaining 20% to cover its factoring fee (equal to 8% of the factored amount), and to provide a cushion against potential sales returns and allowances. After Klein has collected cash equal to the amount advanced to Bay Watch plus their factoring fee, Klein will remit the excess to Bay Watch. Under this arrangement, Klein provides Bay Watch with cash up-front and a “beneficial interest” in the transferred receivables equal to the fair value of the last 20% of the receivables to be collected (which management estimates to be $82,000) less the 8% factoring fee. Provide the journal entry for Bay Watch to record this transaction.
It takes Cookie Cutter Modular Homes, Inc., about six days to receive and deposit checks from customers. Cookie Cutter’s management is considering a lockbox system to reduce the firm’s collection times. What is the reduction in outstanding cash balan..
For Treasuries, there is only one spot yield curve that tells you rates for all possible maturities of Treasury loans starting today. How many Forward curves can you have today? One or more? Why?
A company has just paid a dividend of 4.19$. Its discount rate is 8.3%, and the expected perpetual growth rate is 3.8%. What is the stock's Capital Gain Yield?
A firm is considering actions which will raise its debt ratio. It is anticipated that these actions will have no effect on sales, operating income, or on the firm's total assets. If the firm does increase its debt ratio, which of the following will o..
In 2010, Apple issued $1000 face bonds with a 7% semi-annual coupon. The bonds mature in 2030. Exactly 5 years later, a company financially similar to Apple is preparing to issue 20 year $1000 face bonds with a 6.5% semi-annual coupon. What will be A..
Beth purchased a $50,000 non participating whole life insurance policy. The annual premium was $1,278. The cash value of the policy after 10 years will be $13,740. The future value of $1 deposited at the start of the year for 10 years, assuming 5 per..
Undecided voters are likely to vote for the candidate they think is most likely to win. What is this phenomenon called? Why might some argue that news stations ought to stick to reporting what is actually happening on Election Day rather than making ..
Bell Mountain Vineyards is considering updating its current manual accounting system with a high-end electronic system. While the new accounting system would save the company money, the cost of the system continues to decline. The Bell Mountain’s opp..
In 1987 RJR Nabisco had $5 billion of A-rated debt outstanding. In that year the company was taken over, and $19 billion of debt was issued and used to buy back equity. The debt ratio skyrocketed, and the debt was downgraded to a BB rating. Why did t..
A stock has an expected return of 15 percent, its beta is 1.35, and the expected return on the market is 12 percent. What must the risk-free rate be? (Do not round your intermediate calculations.)
If a bond has a negative term premium, then the yield implied by the pure expectations theory (PET) of the term structure is higher than the yield implied by the liquidity preference theory of the term structure.
One of your customers is delinquent on his accounts payable balance. You’ve mutually agreed to a repayment schedule of $500 per month. You will charge 1.45 percent per month interest on the overdue balance. If the current balance is $13,500, how long..
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd