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jolli1 [7]
3 years ago
6

Fallen Company commonly issues long-term notes payble to its various lenders. Fallen has had a pretty good credit rating such th

at its effective borrowing rate is quite low (less than 8% on an annual basis). Fallen has elected to use the fair value option for the long-term notes issued to Barclay's Bank and has the following data related to the carrying and fair value for these notes. Carrying Value Fair ValueDecember 31,2014 54,000 54,000December 31,2015 44,000 42,500December 31,2016 36,000 38,000a. Prepare the journal entry at December 31 (Fallen's year end) for 2014, 2015, and 2016 to record the fair value option for these notes.b. At what amount will the note be reported on Fallen's 2015 balance sheet?c. What is the effect of recording the fair value option on these notes on Fallen's 2016 income?d. Assuming that general market interest rates have been stable ove the period, does the fair value data for the notes indicate that Fallen's credit-worthiness has improved or declined in 2016? Explain.
Business
1 answer:
dexar [7]3 years ago
5 0

Answer:

b) $42,500

c) Fallen's 2016 net income will get reduced by $3,500  

Explanation:

The a, b, c, d is explained very well in the file attached i hope it works. Thank you.

Download docx
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What Acts of Parliament govern the operation of incorporated not-for-profit organisations?
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Answer:The Australian Charities and Not-for-profits Commission Act 2012 (ACNC Act) governs eligibility of a not-for-profit entity to be registered as a charity for federal purposes, and establishes governance standards and reporting requirements for registered organizations

WARNING: I am not sure I am right

Explanation:

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A firm selling televisions knows from marketing research that when consumers in developing countries reach on average a yearly i
yulyashka [42]

Answer:

That low income can be enough because of either one of these two reasons (or the two at the sime time):

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kipiarov [429]

Answer:

lets do it lol

6 0
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You want the salespeople on your staff to perform at their best, thus you want to make sure they are properly supervised. In det
lbvjy [14]

Answer:

Factors to consider:

1. Specialisation role

2. Complexity of sales process

3.Tenure

4.Geographical coverage

5. Sales Representative leadership

6. Support network

7. Internal Bureaucracy

8. Value add of managers

Factors not to consider;

1. Market share

2. Production process

3. Distribution process

4. Personal affiliation, race or religion

Explanation:

When considering a company's span of control, which simply means the number of junior staff a manager should manage, it is important to note factors relating to geographical coverage, a wide coverage can create difficulties in supervision to a manager. Consequently reducing the span of control.

Specialisation also help in ensuring the manager is an expert in the area he or she supervise. Experienced manager with good understanding of the tasks, good knowledge of the workers and good relationships with the workers, will be able to supervise more workers

The complexity of a sale process can affect a manager's supervision performance. if the sale process for example require an online payment to a final user who may not be physically available. Supervising such sales requires adequate training.

Other factors like; Tenure, Sales Representative leadership, Support network, Internal Bureaucracy, Value add of managers are paramount in determining span of control. However, market share, production process, distribution process and personal affiliation, race and religion should not affect the span of control.

3 0
3 years ago
Read 2 more answers
The Highfield Company is going through a five-year of fast growth at 20% initially, and then it will grow at a perpetual rate of
slava [35]

Answer:

P0 = $66.6429 rounded off to $66.64

Option c is the correct answer

Explanation:

Using the two stage growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula to calculate the price of the stock today is,

P0 = D0 * (1+g1) / (1+r)  +  D0 * (1+g1)^2 / (1+r)^2  +  ...  +  D0 * (1+g1)^n / (1+r)^n  +  [(D0 * (1+g1)^n * (1+g2) / (r - g2)) / (1+r)^n]

Where,

  • g1 is the initial growth rate
  • g2 is the constant growth rate
  • r is the required rate of return

P0 = 2* (1+0.2) / (1+0.1)  +  2 * (1+0.2)^2 / (1+0.1)^2  +  2 * (1+0.2)^3 / (1+0.1)^3  

+  2 * (1+0.2)^4 / (1+0.1)^4  +  2 * (1+0.2)^5 / (1+0.1)^5  +

[(2 * (1+0.2)^5 * (1+0.04)  /  (0.1 - 0.04)) / (1+0.1)^5]

P0 = $66.6429 rounded off to $66.64

7 0
3 years ago
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