Answer: A cash sale
Explanation: In simple words, liquidity refers to the ability of an organisation to bear its short term expenses. For that a company must have cash or some assets that can be readily converted into cash in case of need.
Hence Sally should sell her company in cash sale as it will result in inflow of cash which will create liquidity and also the consideration will be certain with short timely payments.
Other option such as IPO or stock for stock might result in increase in value but certainly won't give her liquidity.
Answer:
Journal Entry
March 1
Dr. Cash $4,550,000
Dr. Discount on Note Payable $450,000
Cr. Note payable $5,000,000
December 1
Dr. Interest Expense $450,000
Cr. Discount on Note Payable $450,000
Dr. Note payable $5,000,000
Cr. Cash $5,000,000
Explanation:
Note payable is document which is payable after a specific period of time.
Note Payable is recorded at the present value of the note face value. We need to discount the face value of the note first.
Interest on the bond = $5,000,000 x 12% x 9/12 = $450,000
On December 31 Interest expense will be recorded and Payment of Note is made.
Hello there,
A typical cost of a retirement would be the following:
Perhaps the "Car of the year".
Smaller House/Smaller apartment.
Hope this helps.
~Jurgen
Answer:
Debit Interest Expense and credit Interest Payable for $6,000.
Explanation:
$100,000 × 8% × 9/12 = $6,000.
The basic five stages are problem recognition, information search, alternatives evaluation, purchase decision, and post-purchase evaluation.
<h3>What is a purchase?</h3>
A purchase refers to the action of buying something. Purchasing is considered an important course of action.
There are five main stages that a customer needs to undergo before making any decision either to buy a product or not.
The five stages are
- Problem recognition- It is the most basic step that ensures if there is a need for purchase.
- Information search- The next step is to search the information related to the Tata Nano
- Alternatives evaluation- It helps in evaluating the choices available for the product. Other options for cars are taken into consideration.
- Purchase decision- After evaluation, a consumer may decide between buying Tata Nano. This decision depends upon the feedback of other people.
- Post-purchase evaluation- After purchasing, it may lead to brand loyalty if the customer is satisfied with the purchase.
Learn more about the Purchase decision process here
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