• Q : Discounted at a simple interest rate....
    Accounting Basics :

    Thirty days after borrowing the money, B. Good settled the debt by having it discounted at a simple interest rate of 7%. How much did G. Whiz recieve?

  • Q : Pay cash for the merchandise....
    Accounting Basics :

    What should be the face value of the note to give them the exact amount they need to pay cash for the merchandise?

  • Q : Converting monthly to yearly rate....
    Accounting Basics :

    Question: Find the rate of interest if money is worth 18% compounded monthly?

  • Q : What are the proceeds....
    Accounting Basics :

    A non interest bearing note of $2000 is discounted at 12% compounded quarterly for 5 years and 8 months. What are the proceeds?

  • Q : Compounding interest....
    Accounting Basics :

    Question: Determine how long it takes for $150.00 to become $2,000.00 if invested at 4% interest compounded quarterly.

  • Q : Total interests from the investment....
    Accounting Basics :

    Invest a total of $4000 in 2 stocks that paid 5% and 7% annual interests. At the end of the year total interests from these investments is $230. How much was invested at each rate?

  • Q : Cost of foregoing the cash discount....
    Accounting Basics :

    Syntech is offered credit terms of 2/10, net 40, but decides to forego taking the cash discount and pays on the 45th day. What is Syntech's cost of foregoing the cash discount?

  • Q : Determine the cost of equity capital for the firm....
    Accounting Basics :

    Problem: The Allegheny Valley Power Company common stock has a beta of 0.80. If the current risk-free rate is 6.5%(Krf)and the expected return on the common stock as a whole is 16%(Km), determine th

  • Q : Asset exchanged at a gain....
    Accounting Basics :

    Asset originally purchased on 1/1/90 is exchanged for a similar asset on 1/1/93.  Cash of $10,000 is also paid and the old asset has fair market value of $8,000 on the date of exchange.

  • Q : Maximum purchase price acceptable....
    Accounting Basics :

    What would be the maximum purchase price acceptable to the Minnetonka Corporation for the bindings? Support your answer with an appropriate explanation.

  • Q : Procedure for revising probabilities....
    Accounting Basics :

    Question 1: _________ is a procedure for revising probabilities based upon additional information.

  • Q : Common stock value-zero growth....
    Accounting Basics :

    The company's class A stock has paid a dividened of $5.00 per share for the last 15 years. Management expects to continue to pay at that rate for the forseeable future . Sally Talbout purchased 100

  • Q : In what form should i take my winnings....
    Accounting Basics :

    Problem: As a sweepstakes ( or lotto ) winner I have 5 choices to choose from. Which should I accept?

  • Q : Current investment approach....
    Accounting Basics :

    1. Explain some disadvantages of Cliff's current investment approach. 2. Construct a portfolio for Cliff, limiting your selections to mutual funds (assume that he sells his current stock and bond ho

  • Q : How many do they have to sell to break even....
    Accounting Basics :

    Problem: Chrysler has develpod a new minivan that has a start up cost of $ 45 000 000. Each new van costs $ 18 000 to make. If Chrysler plans to sell the minivans for $ 30 000, how many do they have

  • Q : How long was the money invested....
    Accounting Basics :

    Linda received $875 on an investment of $14,000 at 15% annual simple interest rate. How long was the money invested?

  • Q : Costs of a level production strategy....
    Accounting Basics :

    a. Determine the costs of a level production strategy for the next six months, with an ending inventory of 8,000 pounds. b. Determine the costs of a chase strategy for the next six months.

  • Q : Prepare four-column general ledger accounts....
    Accounting Basics :

    Prepare four-column general ledger accounts for Georgian Enterprises as of January 1, 2003. Post the January 2003 journal entries to these accounts.

  • Q : Prepare a simple cash budget....
    Accounting Basics :

    On the average 50% of credit purchases is paid in the month of purchase, 50% one month following purchase. REQUIRED: Prepare a simple cash budget for the next four months of 2006.

  • Q : Total capacity exceeds total demand....
    Accounting Basics :

    There are eight plants, each representing the month and type of production (R =regular) (o = Overtime). There are four warehouses 0 one for each monthly demand, plus one dummy warehouse (total capac

  • Q : Maximum amount of interest....
    Accounting Basics :

    He wants to invest from $3000 to $13,000 in the savings account at 4% interest. The bonds will be insured up to $17,000, so Jose doesn't want to invest more than that amount in bonds which will earn

  • Q : Compute net income under accrual basis of accounting....
    Accounting Basics :

    Compute July net income (loss) under the accrual basis of accounting.

  • Q : Balance sheet and owners equity statement....
    Accounting Basics :

    One of your small business clients, Dr. Leo Krusack, has opened a dental practice. He has come to you for help in organizing his accounts. Help him classify each of the following business transactio

  • Q : Compute the amount of accumulated depreciation....
    Accounting Basics :

    (a) Compute the amount of accumulated depreciation on each machine at December 31, 2002. (b) If machine 2 had been purchased on April 1 instead of January 1, what would be the depreciation expense f

  • Q : Risk and return-capital asset pricing model....
    Accounting Basics :

    The capital asset pricing model predicts that a security with a beta of zero will provide an expected return of zero.

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