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!
Raymond Manufacturing faces a liquidity crisis-it requires a loan of $100,000 for 1 month. Having no source of additional unsecured borrowing,
The firm must find a secured short-term lender. The firm's accounts receivable are quite low, but it's inventory is considered liquid and reasonably good collateral. The book value of inventory is $300,000, of which $120,000 is finished goods. (1) City-Wide Bank will create a $100,000 trust receipt loan against finished goods inventory. The annual interest rate on loan is 12 percent on the outstanding loan balance plus a 0.25 percent administration fee levied against the $100,000 initial loan amount. Because it can be liquidated as inventory is sold, the average amount owed over month is expected to be $75,000. (2) Sun State Bank will lend $100,000 against a floating lien on book value of inventory for the 1-month period at an annual interest rate of 13 percent. (3) Citizens' Bank and Trust will lend $100,000 against a warehouse receipt on finished goods inventory and charge 15 percent annual interest on the outstanding loan balance. A 0.5 percent warehousing fee will be levied against the average amount borrowed. Because loan will be liquidated as inventory is sold, the average loan balance is expected to be $60,000. a. Evaluate the dollar cost of each of proposed plans for obtaining an initial loan amount of $100,000. b. Which plan do you recommend? Why? c. If the firm had made a purchase of $100,000 for which it had been provided terms of 2/10 net 30, would it increase the firm's profitability to provide up the discount and not borrow as recommended in part b? Why or why not?
What the underlying fundamental concept is that governs what expenses should be capitalized and what should be expensed.
the amount is dependent on whether it reduces his taxable income. If Billy is going to claim the standard deduction, how much should he contribute to a traditional IRA?
questionsamanta shoes which was launched by entrepreneurs samanta and kelvin joseph produces high-quality shoes in
hourly rate to cover the cost of each financial adviser.work the problem using the following variables average salary
What is the operating income (EBIT) for both firms and what are the earnings after interest
Prepare an extract of the Income Statement to show how Gross Profit would be calculated for the year ended 31st December, under a periodic system using the First in First Out (FIFO) Valuation Method.
Determine the estimated finished goods inventory balance at the end of July, if the company always uses an estimated predetermined plant wide overhead rate of $10 per direct labor-hour?
variable manufacturing overhead $18; fixed manufacturing overhead $42; variable selling and administrative expenses $14; and fixed selling and administrative expenses $28. Its desired ROI per unit is $30. Calculate its markup percentage using varia..
What is the PV of operating cash flows over the competitive advantage period and what is the residual value of the firm after the period of competitive advantage?
What is the appropriate balance for the Allowance for Doubtful Accounts at year-end and show how accounts receivable would be presented on the balance sheet.
multiple choice questions based on share valuation.1.nbspuse the following information to answer this questionnagen
Where are details about changes in the amount of retained earnings fund and Over the three years presented, have the company's annual net cash flows been positive or negative from operating activities,
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