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Novay_Z [31]
2 years ago
9

Below are various states of financial distress: 1. defaulting on a principal payment on debt 2. restructuring debt 3. liquidatin

g a firm 4. filing for bankruptcy 5. failing to make a required interest payment on time what is the order of increasing gravity that analysts typically consider when assessing credit risk and bankruptcy risk according to a continuum of financial distress
Business
1 answer:
anastassius [24]2 years ago
8 0
<span>1) failing to make a required interest payment on time. I chose this as the least significant because you can always make up a late payment and then its not really a huge deal. It could hurt your credit score but it is not a life or death situation. 2) defaulting on a principal payment on debt. This is a little worse because at this point you cant cant even pay the debt and now your falling a little worse into debt but you can still get out. 3) restructuring debt. This is worse because you already have obtained a lot of debt but you are getting the chance to restructure it to help pay it off you even though your in a bad spot you still have a chance to get out. 4) filing for bankruptcy. At this point you are bankrupt you really don't have a lot of options left and you are kind of at the point of no return unless you can get a hold of a lot of cash really fast. 5) liquidating a firm. At this point you have to sell all of your assets in order to pay of your debt. You will be left with nothing left you may even have to sell you house all your jewelry basically everything that you own that has some value that can be sold.</span>
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The two major types of transactions that affect the international flow of money are:
andre [41]
The two major types of transaction that affects the international flow of money are b. debits and credits.
When you say debits, it the liabilities and when you say credits its the assets. These two is the major transaction that makes a big impact to the economy.
4 0
2 years ago
Read 2 more answers
On January 1, Greenview Company adopted the dollar-value LIFO method. The inventory cost on January 1 was $112,000. On December
Mumz [18]

Answer:

125,200

Explanation:

Adjust inventory to base year prices:

= Cost of ending inventory ÷ cost index for the year

= $136400 ÷ 1.1

= $124,000

Current year LIFO layer:

= Adjust inventory to base year prices - Cost of beginning inventory

= $124,000 - $112,000

= $12,000

Inventory to be shown:

= Add the new LIFO layer at end of period prices to prior year LIFO inventory

= (112,000 × 1) + (12,000 × 1.1)

= 112,000 + 13,200

= 125,200

7 0
3 years ago
Why are brand names and advertising important features of monopolistic​ competition? A. Both of these techniques are needed to c
GenaCL600 [577]

Answer:

B. Both of these techniques can be used to increase the demand for the product.

Explanation:

A catchy brand name and adequate marketing of a product plays a vital role in the relative demand of that product. Coca cola for example has properly advertised its products for decades now and when one thinks of beverage, you think Coke. It's been embedded in ones mind and that is the advantage of proper advertising and proper brand naming.

7 0
3 years ago
McConnell Corporation has bonds on the market with 14.5 years to maturity, a YTM of 5.3 percent, a par value of $1,000, and a cu
creativ13 [48]

Answer:

5.75%

Explanation:

First, find the coupon payment amount . Using a financial calculator, key in the following inputs for this the bond valuation.

<em>Note: Make adjustment on the rate and time since the coupon payments are made semi-annually i.e 2 times a year</em>.

Maturity of the bond ; N = 14.5*2 = 29

Semi-annual rate ; I/Y = (5.3%/2) = 2.65%

Face value ; FV = 1000

Price of the bond or PV = -1045

then compute semiannual coupon payment ;  CPT PMT = $28.743

Annual coupon rate is therefore = $28.743*2 = $57.486

Coupon rate = coupon payment / face value

Coupon rate = $57.486 / 1000

= 0.05749 or 5.75%

8 0
3 years ago
Accounts Debits Credits
ikadub [295]

Answer:

a. Unadjusted Trial Balance

Accounts                   Debits   Credits

Cash                       $ 47,300

Accounts Receivable 10,400

Supplies                     3,400

Equipment               19,400

Accumulated Depreciation    $ 3,800

Salaries Payable                        

Common Stock                       28,000

Retained Earnings                    8,200

Dividend                     1,100

Service revenue                    54,000

Repairs and

maintenance exp $12,400

Totals                 $ 94,000 $ 94,000

b. Adjusted Trial Balance

Accounts                   Debits   Credits

Cash                        $ 47,300

Accounts Receivable 10,400

Supplies                        1,200

Equipment                  19,400

Accumulated Depreciation    $ 8,200

Salaries Payable                      20,700

Common Stock                       28,000

Retained Earnings                    8,200

Dividend                     1,100

Service revenue                    54,000

Repairs and

maintenance exp    12,400

Salaries expense    20,700

Depreciation Exp      4,400

Office supplies exp  2,200  

Totals                    $119,100 $ 119,100

3. Income Statement for the year ended December 31, 2021

Service revenue                    54,000

Repairs and

maintenance exp    12,400

Salaries expense    20,700

Depreciation Exp      4,400

Office supplies exp  2,200  39,700

Net income                         $14,300

4. Post-closing Trial Balance

Accounts                   Debits   Credits

Cash                        $ 47,300

Accounts Receivable 10,400

Supplies                        1,200

Equipment                  19,400

Accumulated Depreciation     $ 8,200

Salaries Payable                       20,700

Common Stock                        28,000

Retained Earnings                    21,400

Totals                      $78,300 $78,300

Explanation:

a) Data and Calculations:

Accounts                   Debits   Credits

Cash                       $ 17,000

Accounts Receivable 7,400

Supplies                     3,400

Equipment               12,000

Accumulated Depreciation    $ 3,800

Salaries Payable                        5,800

Common Stock                       22,000

Retained Earnings                    8,200

Totals                  $ 39,800 $ 39,800

1. March 12 Accounts receivable $20,400  Cash $33,600 Service revenue $54,000

2. May 2 Cash $17,400 Accounts receivable $17,400

3. June 30 Cash $6,000 Common stock $6,000

4. August 1 Salaries Payable $5,800 Cash $5,800

5. September 25 Repairs and maintenance expenses, $12,400 Cash $12,400

6. October 19 Equipment $7,400 Cash $7,400

7. December 30 Cash dividends $1,100 Cash $1,100

Adjusting entries:

Salaries expense $20,700 Salaries payable $20,700

Depreciation Expense $4,400 Accumulated Depreciation $4,400

Office supplies expenses $2,200 Supplies $2,200

4 0
2 years ago
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