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iVinArrow [24]
3 years ago
9

At the beginning of the year, long-term debt of a firm is $308 and total debt is $339. At the end of the year, long-term debt is

$269 and total debt is $349. The interest paid is $35. What is the amount of the cash flow to creditors
Business
1 answer:
Gnoma [55]3 years ago
4 0

Answer:

The amount of the cash flow to creditors is $74

Explanation:

Beginning of the year:

Long-term debt = $308

Total debt = $339

At the end of the year:

Long-term debt = $269

Total debt = $349.

Interest = $35

Net new borrowing = Ending Long-term debt - Beginning Long-term debt

= $269 - $308

= ($39)

Cash flow to creditors = Interest paid - Net new borrowing

= $35 - ($39) = $ 74

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An upcoming convention has secured 300 rooms at $140 per room for Friday night. The rack rate for Friday night is $250 per room
m_a_m_a [10]

Answer:

$67,000

Explanation:

The total revenue will be income from the 300 rooms and that from 100 rooms

=(300 x $140) + ($100 x 250)

=$42,000 +$25,000

=$67,000

6 0
3 years ago
On March 25, 2021, Phillips Corporation purchased bonds of Atlas Corporation for $132 million and classified the securities as t
ValentinkaMS [17]

Answer:

An unrealized holding gain of $28 million in 2019.

Explanation:

At the financial year-end, the company have to reevaluate the investment to recognize the gain or loss.  

If the fair value is higher than actual investment, the company gain and vice versa it lost.

In this scenario, the fair value adjustment = the valuation on 31st December – purchased value = $150 million - $132 million = $28 million.

Because this step is just an approach to record new valuation of investment, then it’s consider unrealized.

In short, Phillips Corporation should first update the fair value adjustment of $28 million on December 31 2021

4 0
3 years ago
Suppose the Federal Reserve wants to increase the money supply by $200. Again, you can assume that banks do not hold excess rese
LuckyWell [14K]

Answer:

The fed needs to purchase bonds worth $20 from the banks to increase money supply by $200.

Explanation:

The Federal Reserve wants to increase the money supply by $200.

The reserve requirement is 10%.

The fed can increase the money supply by purchasing bonds from commercial banks.  

The money supply will increase by money multiplier times worth of bonds.  

Increase in money supply = \frac{1}{RR}\ \times\ Worth\ of\ bonds\ purchased

$200 = \frac{1}{0.1}\ \times\ Worth\ of\ bonds

Worth of bonds = \frac{200}{10}

Worth of bonds = $20  

So the fed needs to purchase bonds worth $20 from the banks to increase money supply by $200.

7 0
3 years ago
The essential difference between a command economy and a market economy is that in a market economy
damaskus [11]

Answer:

b  buyers and sellers determine resource allocation.

Explanation:

The market is regulated by the interaction between Sellers and Buyers. However, in a Command economy the market is regulated by the government policies.

4 0
3 years ago
In a typical inventory reordering scenario, if the lead time for delivery of the item increases, the __________ will need to be
Angelina_Jolie [31]

Answer:

Safety stock

Explanation:

Safety stock defines When the lead time for delivery of the item rises in a typical inventory reordering situation, the safety stock would need to be increased if the possibility of stockout is to remain unchanged.

Therefore, according to the given situation the correct answer is safety stock as The lead time of the item improves, the safety stock would need to be increased if the risk of stockout inventory remains the same

6 0
3 years ago
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