Answer:
tractor 35,127,42 debit
note payable 32,172.42 credit
cash 3,000 credit
--to record issuance--
Note payale end of 2018
39,584.19
note payables at Dec 31th
Note payable at the end of 2019
39,584.19
note payables at Dec 31th
Explanation:
As the note has zero.interest we discount the note to get the present value:
Maturity $44,000.0000
time 3.00
rate 0.11
PV 32,172.42
The difference will be a discount that will acrrue interest overtime.
the truck will enter the accounting net of interest charges thus:
3,000 downpayment + 32,127.42 = 35,127.42
interest will be: 32,127.42 x 1.11 = 32,127.41
<u><em>Then, do the same for 2019</em></u>
(32,127.41 + 3,532.0162) x 1.11 = 39,584.19
Answer:
The proceeds from the simple discount note is $16380
, while that of simple interest is $19500
Explanation:
Simple discount notes could likened to a bank loan where interest on the loan is taken from the borrowed funds before disbursement to the loan's beneficiary,hence proceeds from such notes is face value of the notes less interest taken in advance.
While on the other hand,the proceeds from simple interest note is par or face value.
The discount or interest is =8%*$19500=$1560 for one year,but $3120 for two years($1560*2)
The proceeds on the simple discount note =$19500-$3120
=$16380
The proceeds on the simple interest note is face value of $19500
Answer:
1. Operating plan.
2. Operating plan.
3. Financial plan.
4. Dividend policy.
5. B and C.
Explanation:
1. Operating plan: provides detailed implementation guidance for a firm's operations, as well as a forecast of the company's expected future free cash flows.
2. Operating plan: provides the inputs necessary for a risk management evaluation using sensitivity analysis, scenario analysis, or simulations.
3. Financial plan: Is based on knowledge of the amount of funds necessary to compensate the firm's shareholders, and the mix of debt and equity capital used to finance the firm.
4. Dividend policy: sets forth specific targets for cash or share distributions to the firm's shareholders.
Capital structure: describes specific targets for the mix of debt and equity used to finance a firm.
Financial planning can be defined as the process of estimating the amount of capital required for the smooth operations of the business and determine how to achieve the firm's set goals and objectives.
Hence, the following statements are true about financial planning;
I. Once a firm's forecasted financial statements are prepared, the firm must determine how much capital it will need to support these plans.
II. Management must monitor operations after implementing a financial plan to detect deviations from the plan and adjust accordingly.
It's a financial market where people can buy or sell long-term debt or equity-backed securities
The example of capital markets are : New York stock Exchange, American stock exchange, London stock exchange, NASDAQ, Etc
Answer:
Preparing, reading, capturing key ideas, and reviewing.
Explanation:
