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Firlakuza [10]
3 years ago
9

Sanders Enterprises arranged a revolving credit agreement of $9,000,000 with a group of banks. The firm paid an annual commitmen

t fee of 0.5% of the unused balance of the loan commitment. On the used portion of the revolver, it paid 1.5% above prime for the funds actually borrowed on a simple interest basis. The prime rate was 3.25% during the year. If the firm borrowed $6,000,000 immediately after the agreement was signed and repaid the loan at the end of one year, what was the total dollar annual cost of the revolver?
Business
1 answer:
Usimov [2.4K]3 years ago
5 0

Answer:

Total dollar Annual Cost = $300,000

Explanation:

  • Total loan Commitment = 9000000
  • Borrowed Fund (Used Portion) = 6000000
  • Unused Portion (9000000 - 6000000) = 3000000
  • Annual Commitment Fee for unused Portion = 0.50%
  • Commitment Fee = 3000000 x 0.05% = 15000
  • Borrowed Fund (Used Portion) = 6000000
  • Interest Rate (3.25% + 1.5%) = 4.75%
  • Interest Cost (6000000 x 4.75%) = 285000

Total dollar Annual Cost (15000 + 285000) = $300,000

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The simple interest 500,000 amount to 630,000. what is the percentage rate?​
3241004551 [841]
26% Subtract 500,000 from 630,000. Then divide the difference by 500,000.
4 0
3 years ago
Xinghong company is considering replacing one pf its manufacturing machines. The machine has a book value of $44000 and a remain
Artist 52 [7]

Answer:

1. Decrease in Net Income of -$8,500

2. Increase in Net Income of $50,500

3. Replace the old machine with Alternative B

Explanation:

1.

Alternative A  

Cost to Buy New Machine -$117,000

Cash received to trade in old machine $54,000

Reduction in Variable Manufacturing Costs (($33,600*5 years ) - (22,700*5 years )) $54,500

Total change in Net Income -$8,500

2.

Alternative B  

Cost to Buy New Machine -$118,000

Cash received to trade in old machine $54,000

Reduction in Variable Manufacturing Costs (($33,600*5years ) - (10,700*5 years )) $114,500

Total change in Net Income $50,500

<em>3. Replacing the old machine with alternative B will result in an increased income of $50,500 so it is a good option. </em>

5 0
3 years ago
Stockmaster Corporation has two manufacturing departments--Forming and Assembly. The company used the following data at the begi
KonstantinChe [14]

Answer:

Explanation:

Forming

Estimated fixed manufacturing overhead  $27,000

Estimated variable manufacturing overhead ($1.10*5,000)  $5,500

Estimated total manufacturing overhead cost  $32,500

Assembly

Estimated fixed manufacturing overhead  $10,500

Estimated variable manufacturing overhead ($2.80 × 5,000)  14,000

Estimated total manufacturing overhead cost  $24,500

Now we need to add these two numbers ($32,500 + $24,500 = $57,000) in order to identify plantwide predetermined manufacturing overhead rate

Estimated total manufacturing overhead cost  $57,000

Estimated total machine hours  10,000

Predetermined overhead rate  $5.70  [57,000/10,00]

The overhead applied to Job C:

Overhead applied to job C = Predetermined overhead rate x Machine-hours incurred by C

= $5.70 * (3,400 + 2,000)

= $5.70 x (5,400)

= $30,780

Job C’s manufacturing cost:

Direct materials  $11,200

Direct labor cost  $21,900

Manufacturing overhead $30,780

Total manufacturing cost  $63,880

The selling price for Job C:

Total manufacturing cost  $63,880

Markup (40%)  25,552

Selling price  $89,432

 

8 0
3 years ago
7. Assume that the standard hours allowed for the actual total output of the fabric plant are 115,000. Calculate the following v
OlgaM077 [116]

Answer:

The question is missing information, however the way to approach the required is presented below in the explanation

Explanation:

When calculating variances it's always important to flex the budgeted information to standard form so we're comparing apples with apples. If we use the actual budgeted figures we can distort the variances and comparisons of information may be useless. For instance if we produce 40 units but budgeted was 50 units we need to work out what was the budgeted cost for 40 units and compare that to the actual cost of 40 units. That is what is meant by flexing to the standard form.

A) The fixed overhead spending variance is the difference between the budgeted and actual fixed overhead expense. This is calculated as follows

Actual fixed overhead - Budgeted fixed overhead = Fixed overhead spending variance $

B) The fixed overhead volume variance is calculated as follows;

Budgeted fixed overhead rate – Fixed overhead rate applied to the units (quantity of production)

C) Variable overhead spending variance is calculated as follows;

The variable overhead spending variance is the difference between the actual and budgeted rates of expenditure of the variable overhead.

Actual hours worked x (actual overhead rate - standard overhead rate)

= Variable overhead spending variance

D) Variable overhead efficiency variance is calculated as follows;

The variable overhead efficiency variance is the difference between the actual and budgeted hours worked. The standard variable rate per hour is used for this and must be calculated.

Standard overhead rate x (Actual hours - Standard hours)

4 0
3 years ago
Presented below is the 2021 income statement and comparative balance sheet information for Tiger Enterprises.
antiseptic1488 [7]

Answer and Explanation:

The Preparation of Tiger’s statement of cash flows, using the indirect method is shown below:-

                                      <u>TIGER ENTERPRISES</u>

                                         <u>Income Statement </u>

                         <u>For the Year Ended December 31, 2021</u>

<u>Particulars                                                                 Amount</u>

Cash flow from operating activities

Net income                                                               $1,452

Non cash adjustment effects

Depreciation expenses                $280

Changes in operating assets and liabilities

Decrease in accounts receivable $100

Increase in inventory                     ($60)

Increase in prepaid insurance      ($50)

Decrease in accounts payable     ($80)

Decrease in accrued liabilities     ($120)

Increase in income tax payable   $30                     $100

Net cash flow from operating activities                  $1,552

Cash flow from investing activities

Equipment purchased                 ($500)

Net cash flow investing activities                           ($500)

Cash flow from financing activities

Issuance of notes payable        $240

Issuance of common stock       $140

Payment of dividends                ($1,292)

Net cash flow from financing activities                ($912)

Net increase in cash                                              $140

Jan 1 Cash                                                               $240

Dec 32 Cash                                                           $380

Working note:-

Retained earning Opening balance          $480

Add: Net income                                        $1,452

Less: Retained earning closing balance   $640

Paid dividend                                               $1,292

4 0
3 years ago
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