Reference no: EM13941946
At the financial statement date of December 31, 2012, the liabilities outstanding of Packard Corporation included the following:
1) Cash dividends on common stock, $40,000, payable on Jan. 15, 2013.
2) Note payable to Galena State bank, $470,000, due January 20, 2013
3) Serial bonds, $1,400,000 of which $350,000 mature during 2013
4) Note payable to Third National Bank, $300,000 due Jan. 27, 2013
The following transactions occurred early in 2013:
Jan. 15: Cash dividends on common stock were paid
Jan. 20: Note payable to Galena State Bank was paid
Jan. 25: The Corporation entered into a financing agreement with Galena State Bank, enabling it to borrow up to $500,000 at anytime through the end of 2015. Amounts borrowed under the agreement would bear interest at 1% above the bank's prime rate and would mature 3 years from the date of the loan. The corporation immediately borrowed $400,000 to replace the cash used in paying its January 20 note to the bank
Jan. 26: 40,000 shares of common stock were issued for $350,000. $300,000 of the proceeds was used to liquidate the note payable to Third National Bank.
Instructions:
Prepare a partial balance sheet for Packard Corp., showing the manner in which the above liabilities should be presented at December 31, 2012. The liabilities should be properly classified between current and long-term and appropriate note disclosure should be included.
|
Nominal annual percentage cost of its non-free trade credit
: A firm buys on terms of 3/15, net 45. It does not take the discount, and it generally pays after 60 days. What is the nominal annual percentage cost of its non-free trade credit, based on a 365-day year? (Please show all work and formulas)
|
|
Managerial accounting is a field of accounting
: Managerial accounting is a field of accounting that provides economic information for external users
|
|
The perspective is that the tougher enforcement of drug
: The perspective is that the tougher enforcement of drug laws for cocaine or other drug laws may actually increase the crime rate. Post your opinion using the concepts of demand, supply, and elasticity in your discussion.
|
|
Nventory conversion period
: Data on Shin Inc. for 2008 are shown below, along with the inventory conversion period (ICP) of the firms against which it benchmarks. The firm's new CFO believes that the company could reduce its inventory enough to reduce its ICP to the benchmarks’..
|
|
The liabilities should be properly classified
: The liabilities should be properly classified between current and long-term and appropriate note disclosure should be included.
|
|
Find the value of your combined position in the stock
: You buy one share of RWG stock and one European 25-strike put option on RWG stock. For each of the following two RWG stock prices, find the value of your combined position in the stock and the put option on the expiration date of the option. a. On th..
|
|
Strategy consists of buying a market index product
: A strategy consists of buying a market index product at 2010 and longing a put on the index with a strike of 2000. If the put premium is $18.00 and interest rates are 0.25% per month, what is the profit or loss at expiration (in 6 months) on the comb..
|
|
Current after-tax market value of the proposed factory site
: Huskers Inc. is considering to build a bowling ball manufacturing facility. Find the NPV and IRR of the project using the information given below: Cost of test marketing already spent: $300,000. Current after-tax market value of the proposed factory ..
|
|
Strike european call option
: You purchase one 35-strike European call option on QRS stock, and you sell one 80- strike European call option on QRS stock. Both options have the same expiration date. Find the payoff (or value) of your option portfolio for each of the following two..
|