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3 years ago

Which of the following is an example of an illiquid asset?

Business

1 answer:

denis23 [38]3 years ago

5 0

Answer:

The correct answer would be B, Money in a checking account.

Explanation:

Liquid assets are one in the category of assets that are ready to be converted into cash. Cash held by a company is the considered the liquid asset of the company. Or any assets which can be converted into cash without losing so much of its value is called a liquid asset. For example if a company holds gold bars as one of the assets, then this would be considered as the liquid asset because gold can easily be converted into cash in case of need. Account Receivables, Gold, deposits receipts, securities, bonds, etc are considered to be the liquid assets of the company after Cash.

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Sage Company borrowed $3,000,000 on March 1 on a 5-year, 12% note to help finance construction of the building. In addition, the

valina [46]

Question:

Riverbed Company is constructing a building. Construction began on February 1 and was completed on December 31. Expenditures were $5,400,000 on March 1, $3,600,000 on June 1, and $9,000,000 on December 31. Riverbed Company borrowed $3,000,000 on March 1 on a 5-year, 12% note to help finance construction of the building. In addition, the company had outstanding all year a 10%, 5-year, $6,000,000 note payable and an 11%, 4-year, $10,500,000 note payable. Compute avoidable interest for Riverbed Company. Use the weighted-average interest rate for interest capitalization purposes.

Answer:

The total avoidable interest is $743,040.00

Explanation:

Here we have

Date Expenditure Period Portion

Mar-01 $5,400,000.00 10/12 $4,500,000.00

Jun-01 $3,600,000 7/12 $2,100,000

Dec-31 $9,000,000 0/12 $0

Total $6,600,000.00

The weighted average expenditure is $6,600,000.00

The weighted average rate using the notes payable loan is found by the following calculation

Type of loan Amount Interest rate Interest incurred

Loan $6,000,000 10% $600,000.0

Loan $10,500,000 11% $1,155,000.00

Total $16,500,000 $1,755,000.0

Weighted average rate = Total interest incurred / Total loans

Weighted average = 1755000/16500000 = 0.10636 = 10.64%

The general interest is found by subtracting the specific loan from the weighted average expenditure

General = Weighted average expenditure - Specific loan

General = $6,600,000.00 - $3,000,000 = $3,600,000.00

The avoidable interest is found by summing the specific interest to the weighted average interest as follows

Type of loan Amount Interest rate Interest incurred

Specific $3,000,000 12% $360,000.00

General $3,600,000 10.64% $383,040.0000

Total $743,040.00

The total avoidable interest = $743,040.00

5 0

2 years ago

A first-round draft choice quarterback has been signed to a three-year, $10 million contract. The details provide for an immedia

inessss [21]

Answer:

$8.31 million and No.

Explanation:

In this question, we have to find out the present value which is shown below:

= $1 + first year value ÷ ( 1 + discount rate) + second year value ÷ ( 1 + discount rate) ^ number of years + third year value ÷ ( 1 + discount rate) ^ number of years

= $1 + $2 million ÷ (1 + 10%) + ($3 million ÷ 1.10)^2 + ($4 million ÷ 1.10)^3

= $1 million + $1.82 million + $2.48 million + $3.01 million

= $8.31 million

No the package would not worth $10 million as its present value is $8.31 million

7 0

3 years ago

Which organization was one of the five services that merged to form the current Coast Guard?

True [87]

Answer:

The modern Coast Guard was formed by a merger of the U.S. Revenue Cutter Service and the U.S. life-saving on 28 january 1915

6 0

2 years ago

M13-9 Inferring Financial Information Using the Current Ratio [LO 13-4] Mystic Laboratories reported total assets of $10,500,000

zaharov [31]

Answer: $6,410,000

Explanation:

The current ratio calculates the ability of a company to meet its short term liabilities.

A current ratio greater than 1 indicates that a company is more able to meet its short term obligations. Mystic Laboratories with a current ratio of 1.3 has a greater ability to meet its short term obligations.

Current ratio = current assets / current liabilities

Total assets = current assets + non current assets

$10,500,000 = current assets + $2,167,000

Current assets = $8,333,000

1.3 = $8,333,000 / current liabilities

Current liabilites = $6,410,000

I hope my answer helps you

7 0

2 years ago

Assume that the company that John and Tina work for wants to give the $50 million to the political campaigns. Which of the follo

sdas [7]

Answer:

The correct answer is (d)

Explanation:

The first amendment has given political parties the right to speak and do political campaigns, and it had restricted government to stop them. Overall, the first amendment right is protecting political speeches and political campaigns. So, yes the first amendment right has demoted all the limits which restricted political parties to get funds from corporations.

4 0

2 years ago