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!
Question: On May 1, 2015 Short Company has an immediate need for cash and decides to factor $1,700,000 of its receivables to IBC Inc., a financial institution. Short will pay a finance charge of 8% of the total accounts receivable factored and an amount equal to 5% of the total receivables will be retained by IBC to cover sales discounts. Short factored the receivables on a without recourse basis.
a. Prepare the entry required on Short's books on May 1.
b. Instead of selling their receivables on a without recourse basis, Short decides to get a more favorable finance charge and factor on a with recourse basis. Short will pay a finance charge of 6% of the total accounts receivable factored and IBC will retain an amount equal to 4% of the total receivables to cover sales discounts. The recourse provision has a fair value of $60,000. Prepare the entry now required for the sale of receivables by Short on May 1.
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: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd