55 x 10^9 hope this helped :D
Answer:
Factoring fee = 2% * Account Receivable
= 2% * $3,400
= $68
Date Account Titles and Explanation Debit Credit
Cash $3,332
Factoring expenses $68
Account receivables $3,400
(To record the receipt of cash against the receivables)
Answer:
Current ratio is 2.5:1
Quick ratio 1.9:1
Explanation:
Current ratio =current assets/current laibilities:1
current assets =cash+marketable securities+accounts receivables+inventory
current assets=$225000+$115,000+$112000+$158,000
current assets =$610,000
current liabilities=accounts payable=$244,000
Current ratio=610000/244000
current ratio=2.5
:1
quick ratio =(current assets-inventory)/current liabilities:1
quick ratio=(610000-158000)/244000
=1.9:1
The current ratio suggests the company has liquid resources that is more than double of current liabilities which can used in discharging debt obligations in the normal course of business
Quick ratio excludes inventory from the ratio since inventory is most difficult item to convert to cash
Answer:
discount yield=7.17%
bond equivalent yield=7.34%
effective annual yield =7.64%
Explanation:
Discount yield =discount /face value*360/t
where t is the number of days to maturity
discount =face value -issue price
discount=100-97.63
discount=2.37
discount yield =2.37/100*360/119
discount yield=7.17%
bond equivalent yield=(1+periodic yield)^360/t-1
periodic yield =discount/face value=2.37/100=2.37%
bond equivalent yield =(1+2.37%)^(360/119)-1
bond equivalent yield=7.34%
effective annual yield=(1+HPY)^365/t-1
Holding period yield (HPY)=discount/price=2.37/97.63
HPY=2.43%
effective annual yield=(1+2.43%)^(365/119)-1
effective annual yield =7.64%
Answer:
(c) Foreign exchange option
Explanation:
Derivatives refer to those securities whose value is derived from the underlying asset. Examples being currency derivatives, commodity derivatives, etc.
Foreign exchange option refers to a derivative instrument whereby the holder has the right but not the obligation to buy or sell a currency at a future date at a predetermined rate fixed today.
In a call option, the holder has the right but not the obligation to buy a currency while in a put option the holder has the right but not the obligation to sell a currency.
The predetermined price at which the holder can buy or sell a currency is referred to as the strike price or exercise price.
