working capital management, Managerial Accounting

Assignment Help:
stanley shoe company established a line credit with a local bank. the maximum amount that can be borrowed under the terms of the agreement is $100000 at an annual rate of 12%. a compensating balance averaging 10% of the amount borrowed is required. prior to the agreement, the company had no deposit with the bank. shortly after signing the agreement, the company needed $50000 to pay off a note that was due. it borrowed the $50000from the bank by drawing on the line of credit. what is the effective annual cost of credit?

Related Discussions:- working capital management

Attributes of good information, Attributes of good information 1) Informa...

Attributes of good information 1) Information is anything that is communicated and is sometimes said to be processed data. It is data processed in such a way as to be of meaning

Starbucks project, 1)Prepare a three (3) year forecast of estimated future ...

1)Prepare a three (3) year forecast of estimated future cash flows for you company and give valid economic/business reasons for your projections. This means you will have a stateme

Funds generated from operations, Funds produced from operations, throughout...

Funds produced from operations, throughout an accounting period, raise working capital by an equivalent amount. The two major components of funds generated from operations are depr

Trade credit, It is a spontaneous source of finance that is commonly extend...

It is a spontaneous source of finance that is commonly extended to business organization depending on the custom of the competition and trade prevailing within the organization and

Extra cost decision, Discuss arguably how management accountants should dec...

Discuss arguably how management accountants should decide when are faced with the extra shift decision

Bench marking, BENCH MARKING In the current business environment, organ...

BENCH MARKING In the current business environment, organizations are under a lot of pressure to improve performance and that of their divisions or subsidiaries. Bench marking i

Budgetary styles, their definitions and the advantages and disadvantages

their definitions and the advantages and disadvantages

[email protected], Why might managers favour this ABC system instea...

Why might managers favour this ABC system instead of the older system that allocated all MOH costs on the basis of direct? labour?

Independence of observations, Independence of observations An important...

Independence of observations An important assumption for the simple linear regression model is the independence of errors. In many time series models, this assumption is violat

Write Your Message!

Captcha
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!

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