User Account

All Pages

What is the present value of the expected future cash flows

Assignment Help Accounting Basics
Reference no: EM132769840

Question - On January 1, 2015, Nickel Company loaned Copper Company amounting to P2,000,000 and received a two-year, 6%, P2,000,000 note. The note calls for annual interest to be paid each December 31. Nickel collected the 2015 interest on schedule. However, on December 31, 2016, based on the Copper's recent financial difficulties, Nickel expects that the 2016 interest, which was recorded in the books, will not be collected and that only P1,200,000 of the principal will be recovered. The P1,200,000 principal amount is expected to be collected in two equal installments on December 31, 2018 and December 31, 2020. The prevailing interest rate for similar type of note as of December 31, 2016 is 8%, December 31, 2017 is 9%, December 31, 2018 is 10%, December 31, 2019 is 7%, and December 31, 2020 is 9%.

Required - What is the present value of the expected future cash flows as of December 31, 2016? The loan impairment loss in 2016 is?

Reference no: EM132769840

Questions Cloud

Determine the selling price of the bond for abc company : Determine the selling price of the bond. ABC Company issued $600,000, 10%, 10-year bonds on January 1, 2010 when the market interest rate was 8%.
What must the annual coupon rate be on the bonds : The bonds make semiannual payments. What must the annual coupon rate be on the bonds?
How implementing diversity and commonality : Discuss how the types of threats discussed in the article referenced above could impact our economy, and how implementing Diversity and Commonality
Explain your methods to get a truly random sample : Compare and contrast your sample with the population using the National Statistics and Graphs document. Explain your methods to get a truly random sample.
What is the present value of the expected future cash flows : Required - What is the present value of the expected future cash flows as of December 31, 2016? The loan impairment loss in 2016 is
Legacy hardware appliance : Your remote sales team currently VPN in to the corporate office via a legacy 3rd party VPN client and a legacy hardware appliance.
What was the gain or loss on the disposal : What was the gain (or loss) on the disposal? Brown Inc. disposed of an asset at the end of the sixth year of its estimated life for $19,000 cash.
What type of validity is reduced by the given method : Virginia wants to study the effectiveness of different training methods on nurses' ability to properly give vaccinations. To measure the effects of training.
Solve for the company break-even point in unit sales : The company's monthly fixed expense is $4,200. Solve for the company's break-even point in unit sales using the equation method

Reviews

Write a Review

Accounting Basics Questions & Answers

  Make journal entries to record the preceding transactions

Make journal entries to record the preceding transactions on the assumption that the bonus (or no revaluation) method is used.

  Job-order costing for each of its installations and repairs

Yoste Roofing uses job-order costing for each of its installations and repairs. Overhead is allocated based on the cost of roofer's wages. At the start of the year, annual roofer were estimated to be $575,000 based on 34,000 labor hours, and compa..

  What are the fixed and variable cost of the havana pantaloon

For the black and stripes together, what are the fixed and variable cost of the Havana pantaloons? Jack's discount rate is still 38%.

  Suppose that you are the president of allied equipment your

these financial statement items are for barone corporation at year-end july 31 2010. salaries payable 2080 salaries

  What will be the value of festige holdings shares

You are trying to evaluate the economics of purchasing an apartment. You expect the apartment to provide annual after-tax cash benefits of US$6,000.

  What should Val expenses be for December

Should Val have included the $3,000 in his December revenue figure? Why? What should Val expenses be for December

  Compute the net pay of the employees during November

Ferris Party Rental has 10 employees who earned a total of $25,000 in November ($2,500 each). Compute the net pay of the employees during November

  Determine the cost per equivalent unit for materials

Using the FIFO method, determine the following. Show your work - Cost per equivalent unit for materials and conversion costs

  Build a data model and a minimal relational database

Build a data model and a minimal relational database for MMM. Also, diagram as complete a value chain as you can for MMM

  What is the dollar amount of dividend received by red inc

Teal, Inc., a foreign corporation, pays a dividend to its shareholders on November 30. What is the dollar amount of the dividend received by Red, Inc.?

  Weighted-average method for accounting for units and costs

Compute the equivalent units of production for materials and conversion costs for the first department for October, assuming that the company uses the weighted-average method for accounting for units and costs:

  Enter question here grandiose growth has a dividend growth

enter question here grandiose growth has a dividend growth rate of 20. the discount rate is 15. the end-of-year

Free Assignment Quote

Assured A++ Grade

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd