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!
Jack owns a small factory that produces buttons for garment industry. Jack wants to buy a new machine and has applied to a bank for financing. The loan officer has asked for operating statements for the past year. The company's net income has not been very good over the last year, and inventory has grown substantially. Jack is concerned that the bank will not loan the money as they will not be as optimistic as he is about Jack's future sales and the company's ability to reduce its inventory. Yesterday Jack had the following conversation with the company's controller.
Jack: You know that I have applied for a bank loan and that the bank wants copies of our operating statements for the last 12 months.
Controller: I can have those ready for you today.
Jack: I would like you to make some changes before you prepare those statements.
Controller: what changes?
Jack: I want you to increase our predetermined overhead rate by 25% and then recalculate the inventory figures and last year's income statement using the new rate. Also, move my salary and our office rent into the manufacturing overhead pool. I will need those statements in the morning.
1. What effect would the change in predetermined overhead rate have on the company's inventory values?2. What effect would the reclassification of Jack's salary and the office rent have on the company's product costs?3. What parts of a financial statement would reveal Jack's changes to the loan officer?
Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest. How much control does the Fed have over this longer real rate?
Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.
Accounting problems, Draw a detailed timeline incorporating the dividends, calculate the exact Payback Period b) the discounted Payback Period. the IRR, the NPV, the Profitability Index.
Term Structure of Interest Rates
Write a report on Internal Controls
Prepare the bank reconciliation for company.
Create a cost-benefit analysis to evaluate the project
Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR
Distinguish between liquidity and profitability.
Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.
Simple Interest, Compound interest, discount rate, force of interest, AV, PV
CAPM and Venture Capital
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