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Umnica [9.8K]
2 years ago
14

Sandburg Company requires additional cash for its business. Sandburg has decided to use its accounts receivable to raise the add

itional cash and has asked you to determine the income statement effects of the following contemplated transactions.
1. On July 1, 2017, Sandburg assigned $400,000 of accounts receivable to Keller Finance Company. Sandburg received an advance from Keller of 80% of the assigned accounts receivable less a commission of 3% on the advance. Prior to December 31, 2017, Sandburg collected $220,000 on the assigned accounts receivable, and remitted $232,720 to Keller, $12,720 of which represented interest on the advance from Keller.
2. On December 1, 2017, Sandburg sold $300,000 of net accounts receivable to Wunsch Company for $270,000. The receivables were sold outright on a without recourse basis.
3. On December 31, 2017, an advance of $120,000 was received from First Bank by pledging $160,000 of Sandburg's accounts receivable. Sandburg's first payment to First Bank is due on January 30, 2018.
Required:
1. Prepare a schedule showing the income statement effects for the year ended December 31, 2014, as a result of the above facts.
Business
1 answer:
olga_2 [115]2 years ago
4 0

Answer:

$52,320.00

Explanation:

Income statement schedule for the year

year ended December 31, 2014

Expenses resulting from accounts receivable (400000*80%*3%+12720)

$22,320.00

Loss resulting from A/R sold (300000-270000) $30,000.00

Total Expenses $52,320.00

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QUIZLET: Most foreign exchange comes to Central Africa from Group of answer choices plantation plant products forest products mi
andreyandreev [35.5K]

The activity that brings in the most foreign exchange to Central Africa is <u>Mining</u>.

<h3>How much mining is done in Central Africa?</h3>

Central African nations such as Central African Republic are well known to have a lot of natural resources.

Minerals available include copper, diamonds, limestone, uranium and others. As a result, mining these minerals brings foreign exchange to the region.

Find out more on international trade at brainly.com/question/15115779.

#SPJ1

3 0
1 year ago
An investor bought a one-acre lot on the outskirts of a city for $12,700 cash. Each year she paid $175 of property taxes. At the
german

Answer:

79.5%.

Explanation:

Rate of return = \frac{final value - initial value}{initial value} x 100

The cost of the acre = $12700.

Total property taxes paid for 7 years = $175 x 7

                                                             = $1225

Net value of cost = $12700 + $1225

                             = $13925

Net value of the land when sold = $25000

∴ Rate of return = \frac{25000 - 13925}{13925} x 100

                          = 0.7953 x 100

                          = 79.53%

The rate of return of the acre of land is 79.5%.

7 0
2 years ago
What is the weighted average cost of capital (WACC) for ABC Limited which has the following capital structure? $5m of equity wit
katrin2010 [14]

The weighted average cost of capital (WACC) for ABC Limited is 12.63%

The weighted average cost of capital(WACC) of a firm is the average cost of finance incurred by the firm on all its sources of finance.

It is determined as the sum of the cost of each source of finance multiplied by their respective weights in the firm's capital structure.

By weights, I mean the percentage of funding each source contributes to the total finance available at the firm's disposal.

WACC=(weight of equity*cost of equity)+(weight of mezzanine finance*cost of mezzanine finance)+(weight of debt*cost of debt)

weight of equity=equity finance/total finance

cost of equity=15%

weight of mezzanine finance=mezzanine finance/total finance

cost of mezzanine finance=9.5%

weight of debt of finance=debt finance/total finance

total finance=$5m+$2m+$1m

total finance=$8m

WACC=($5/$8*15%)+($2/$8*9.5%)+($1/$8*7%)

WACC=12.63%

Find further guidance on weighted average cost of capital's computation in the link below:

brainly.com/question/25566972

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7 0
1 year ago
Alaska king crab fishing in the 1960s and '70s was a dangerous but rich fishery. Boats from as far away as California and Japan
Readme [11.4K]

Answer and Explanation:

a. The crabs are a Common Good. They means can run out of supply if their use gets too much by society. Therefore, the decline of the Alaska king crab fishery can be explained by stating that the plenty types of boats such as those from California and Japan, has caused people to overfish, excessive fishing has brought about a decline in the supply of crabs.

b. There are 2 ways to avoid this

1. fishing permits have to be sold to the fishermen coming to fish for the crabs. Then the persons with the highest willingness to pay will come and buy the permits to fish.

2. Issuing just a particular amount of permits this would cause the fishermen to trade these permits. These open-market strategies have proved to be effective in organizing economic activity and are good stimulators in an economy.

c. They have been successful because regulations have been placed on fishing by the government. Also, if there are restrictions on other countries using up their spots and Canadians are the only ones fishing salmon, then there will be reduction in the decay rate of the population of the salmon, the salmon can easily repopulate, then Canadians would be able to come back the next year to fish again..

7 0
3 years ago
What factors impact the poverty rate?
erastovalidia [21]
Factors that impact the poverty rate: crime depending on the place the person lives in, social inequality, environmental conditions, and the lack of education 
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