All categories

3 years ago

A list of financial statement items for Blossom Company includes the following:

Business

1 answer:

cricket20 [7]3 years ago

5 0

Answer:

Total current assets $83,580

Explanation:

The preparation of the current assets section of the balance sheet is shown below:

Current Assets Amounts

Cash $22,360

Debt investments(short term) $17,360

Accounts receivables $30,100

Supplies $8,170

Prepaid Insurance $5,590

Total current assets $83,580

You might be interested in

Marko, Inc., is considering the purchase of ABC Co. Marko believes that ABC Co. can generate cash flows of $6300, $11,300, and $

sladkih [1.3K]

Answer:

$27,642.86

Explanation:

To determine the price Marko will pay today to buy ABC Co, one has to find the present value of the cash flows.

Present value is the sum of discounted cash flows.

Present value can be calculated using a financial calculator.

Cash flow in year one = $6300

Cash flow in year two = $11,300

Cash flow in year three = $17,500

I = 11%

Present value = $27,642.86

To find the present value using a financial calacutor:

1. Input the cash flow values by pressing the CF button. After inputting the value, press enter and the arrow facing a downward direction.

2. After inputting all the cash flows, press the NPV button, input the value for I, press enter and the arrow facing a downward direction.

3. Press compute

I hope my answer helps you

7 0

3 years ago

You can buy a car that is advertised for $24,600 on the following terms: (a) pay $24,600 and receive a $4,600 rebate from the ma

Vadim26 [7]

Answer:

A. $20,000

B. $17,234.18

C.Option (b)

Explanation:

Obviously, the option with lower Present Value would be the best option to buy the car. The Present Value of the options can find out as following

REQUIREMENT A

Price of car = $24,600

Rebate = $4,600

Present value of the payments for option = Price of the car – rebate

Present value of the payments for option (a) = $24,600 - $4,600

Present value of the payments for option = $20,000

REQUIREMENT B

We can use the following Present Value of an Annuity formula to calculate the present value of the payments

PV of the payments for option = PMT * [1-(1+i) ^-n)]/i

PV of the payments for option (b) (PV) =?

Monthly payment PMT =$410 per month

Number of payments n = 5 years *12 months = 60

Monthly interest rate i=1.25% per month or 0.0125

PV of the payments for option = $410 x [1- (1+0.0125) ^-60]/0.0125

PV of the payments for option = $17,234.18

REQUIREMENT C.

Which is the better deal?

Option (b) is better deal as the present value of payments ($17,234.18) is less than Present value of the payments for option (a); $20,000.

3 0

3 years ago

Which of the following methods does not help reduce marketing risks?

Nitella [24]

Answer: The following methods does not help reduce marketing risks: Integrate vertically to insure a market or form a marketing alliance.

Integrating a firm vertically and thereby forming a marketing alliance won't reduce the marketing risks for any organization.

Therefore, the correct option in this case is (c).

7 0

3 years ago

Let the random variable Z follow a standard normal distribution.

Bas_tet [7]

Answer:

(a) z = 0.53

(b) z -0.67

(d) z = 0.26

Explanation:

A standard normal distribution has mean 0 and standard deviation 1.

(a)

Compute the value of z for P (Z < z) = 0.70 as follows:

Consider the standard normal table for the value of z.

The value of z is 0.53.

(b)

Compute the value of z for P (Z < z) = 0.25 as follows:

Consider the standard normal table for the value of z.

The value of z is -0.67.

(c)

Compute the value of z for P (Z > z) = 0.20 as follows:

P (Z > z) = 0.20

1 - P (Z < z) = 0.20

P (Z < z) = 0.80

Consider the standard normal table for the value of z.

The value of z is -0.84.

(d)

Compute the value of z for P (Z > z) = 0.60 as follows:

P (Z > z) = 0.60

1 - P (Z < z) = 0.60

P (Z < z) = 0.40

Consider the standard normal table for the value of z.

The value of z is 0.26.

8 0

3 years ago

Sheffield Corp. is authorized to issue both preferred and common stock. The par value of the preferred is $50. During the first

BabaBlast [244]

Answer:

Explanation:

The journal entries are shown below:

On Feb 1

Cash A/c Dr $2,781,000 (51,500 shares × $54)

To Preferred Stock $2,575,000 (51,500 shares × $50)

To Additional Paid-in Capital in excess of par - Preferred stock $206,000

(Being the issuance of stock is recorded and the remaining balance is credited to the additional paid-in capital account)

On July 1

Cash A/c Dr $3,886,000 (67,000 shares × $58)

To Preferred Stock $3,350,000 (67,000 shares × $50)

To Additional Paid-in Capital in excess of par - Preferred stock $536,000

(Being the issuance of stock is recorded and the remaining balance is credited to the additional paid-in capital account)

4 0

3 years ago