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andre [41]
3 years ago
6

Wolf Den Craft Beers projects that it will need​ $50 million in total assets to meet the sales projection of​ $65 million. The p

ro forma balance sheet shows accounts​ payable, $8​ million, accrued​ expenses, $2​ million, longminusterm ​debt, $10 million and​ equity, $25 million. If Wolf Den decides to meet discretionary financing needs with 5 year notes​ payable, how much will it need to​ borrow?
Business
1 answer:
ivanzaharov [21]3 years ago
7 0

Answer:

$5 million

Explanation:

As we know the asset is financed from two capital sources equity and liability.

Using Accounting equations as follow

Assets = Equity + Liabilities

Total Assets Value = Equity Value + ( Account Payable + Accrued expenses + Long-Term Debt )

As we both sides are not equal, asset are more that the sum of equity and liabilities so we need more borrowing to finance the assets.

$50 million = $25 millions + ( $8 million + $2 million + $10 million ) + Additional Borrowing

$50 million = $25 millions + $20 million + Additional Borrowing

$50 million = $45 millions + Additional Borrowing

Additional Borrowing = $50 million - $45 millions

Additional Borrowing = $5 million

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Which of the following refers to documents that specify the conditions under which an exchange is to occur and detail the rights
madreJ [45]

Answer:

contracts                      

Explanation:

A contract is essentially an arrangement among two parties which creates a legal duty for both sides to carry out specific events. Each group is required by law to perform the job indicated, such as making the payment or transporting goods.

A contract might be used for different transactions, like selling land or commodities, or providing services. These may be either verbal or published, although the judiciary prefer to put in print the arrangements.

It is best to think about contract statements in a sequence. The full contract development starts with talks and may experience many changes before achieving a final deal.

5 0
3 years ago
Holly and matt want to use the "nonworking" spouse method to determine the amount of life insurance coverage they need. if their
Maksim231197 [3]

The best answer for this question would be:

 

$150,000

 

Because in the method of the “non-working” spouse method, they are given a calculation of (18 - youngest child's age) × $10,000 (18 being the legal age)

 

Resulting that the solution would be:

<span> (18 - 3) × $10,000 = $150,000</span>

8 0
3 years ago
Suppose we are a distributor that uses safety stock and a reorder point for inventory management. If we can find a more consiste
Ulleksa [173]

Answer:

The answer is False. By cutting the variance of the demand during lead time to 1/2 its original value while maintaining the same lead times, the new safety stock will also drop to 1/2 its original value.

Explanation:

Safety stock is a form of inventory management that provides an additional unit of an item held as a buffer i order to mitigate risk of running out of stock.

A reorder point provides a buffer of time to restock items when stock is running out. It helps to reduce operational costs and chaos that may arise  such as rush fees owed to suppliers. It makes the use of a warehouse space more efficient.

Suppose we are a distributor that uses safety stock and a reorder point for inventory management. If we can find a more consistent manufacturer that will maintain the same mean lead times while cutting the variance of the demand during lead time to 1/2 its original value, the new safety stock that we need to carry to achieve the same service level will also drop to 1/2 its original value.

6 0
3 years ago
Item 15Item 15 Gee-Gee's is going to pay an annual dividend of $2.05 a share next year. This year, the company paid a dividend o
meriva

Answer:

$27.33

Explanation:

For computing the one share of the common stock after six years from now first, we have to determine the price of the common stock which is shown below

Price of the common stock = Next year dividend ÷ (Required rate of return - growth rate)

= $2.05 ÷ (11.2% - 2.50%)

= $23.56

The growth rate is

= ($2.05 - $2) ÷ ($2)

= 2.50%

Now the one share of the common stock after six years is

= $2 × 1.025^7 ÷ (11.2% - 2.50%)

= 2.3773715073  ÷ 8.7%

= $27.33

6 0
3 years ago
Randall describes his job this way.
julia-pushkina [17]

Answer:

I am pretty sure it is maintenance/ operations

Explanation:

Because he is going and making sure stuff is working right, and fixing them if they are not.

7 0
3 years ago
Read 2 more answers
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