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!
On September 30, 2011, Print-O-Matic Inc. entered into an arrangement with its bank to borrow $250,000. The principal is due on October 1, 2016, and the note has a stated annual interest rate of 10 percent. Under the borrowing agreement, Print-O-Matic agreed to maintain a compensating balance of $60,000 in a non-interest-bearing account. As of December 31, 2011, Print-O-Matic has an additional $225,000 in various savings and checking accounts that earn an annual rate of 6 percent. The controller intends to classify the entire $285,000 in cash as a current asset.
REQUIRED:
a. Do you agree with the classification of the $285,000 of cash as a current asset? Explain your answer. b. Print-O-Matic reported interest expense associated with this note for the year ended December 31, 2011, in the amount of $6,250 [($250,000 × 10%) × 1/4]. Do you agree with this classification? Should any other factors be considered in the interest cost? Explain.
Suppose 144 yen could be purchased in the foreign exchange market for one U.S. dollar today. If the yen depreciates by 23.0% tomorrow, how many yen could one U.S. dollar buy tomorrow?
if you barrow 4000 at 500 interest for one year what is your effective interest rate for the following payment
a. What was the economic rationale behind JAL's hedges? b. Did JAL's forward contracts constitute an economic hedge? That is, is it likely that JAL's losses on its forward contracts were offset by currency gains on its operations?
(a) Calculate the changes in the margin account from daily marking-to-market and the balance of the margin account after the third day. (b) Do the problem again assuming you have a long position in the futures contract.
What does it mean for a company to "thin" its inventories? How would such a business practice aid a company during an economic recession?
Given the facts above, should you lease the house or sell it? The current market value is approximately $320,000. Explain your rationale, and show your work.
coefficient of variation metal manufacturing has isolated four alternatives for meeting its need for increased
From the following balance sheet accounts, construct a classified balance sheet for 2015 and 2014, list all working capital accounts (names, not amounts) and find the net working capital for the years ended 2015 and 2014
Which of the following is a correct way to calculate degree of combined leverage?
Assume that the Fed's primary goal is to reduce inflation. How can it use open market operations to achieve this goal?
Brian responds that the sunken ship was abandoned and therefore he has good title to everything to which he took possession. What is the court likely to rule and why?
One of the more successful strategies in retailing has been the development of "designer label" lines of apparel. In what ways does a designer suit differ from its equivalent purchased from a discount chain? Is this the result of advertising, qual..
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