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Arisa [49]
3 years ago
5

The bank loan of $2,000,000 requires Irkalla to maintain certain financial ratios but Irkalla has not been able to do so and is

in violation of the loan agreement. The creditor has not waived its rights in regard to the loan. What amount should Irkalla report as current liabilities at December 31, year 8?
Business
2 answers:
aalyn [17]3 years ago
8 0

Answer:

Current liabilities at December 31, 2014 for Irkalla;

$200,000 + $100,000 + $2,000,000 + $1,000,000 = $3,300,000.  

Method of reasoning: Accounts payable-exchange and Short-term borrowings consistently fall under "Current Liabilities". Development for Other bank advance has not explicitly given (for example develops June 30, 20 × 5), so we accept it to develop on June 30, 2015. Since development is expected inside 1 year, it additionally falls under current risk as term is just a single year. On the bank credit of $2,000,000, Irkella has damaged the terms, so now this advance is likewise required to be paid off soon and thus it additionally now goes under "Current Liabilities"

nydimaria [60]3 years ago
7 0

Answer:

Current liabilities= $3,300,000

Explanation:

Current liabilities are defined as the amounts that a business owes other parties that is short term, usually less than one year.

This will include all short term obligations that the business has to settle.

When current liabilities are deducted from current assets it gives what is available for business operations.

From the information give

Current liabilities= Accounts payable+ Short term borrowing+ Current portion of bank loan+ Other bank loan that matures on June 30

But since they are in violation of the loan agreement the debtor will be able to collect the whole loan at anytime. So we classify the whole loan amount of $2,000,000 as a current liability. Instead of only $100,000 we consider the whole $2,000,000.

Current liabilities= 200,000+ 100,000+ 2,000,000+ 1,000,000

Current liabilities= $3,300,000

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Yappy Company is considering a capital investment of $320,000 in additional equipment. The new equipment is expected to have a u
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d. IRR = 12.26%

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the project should be accepted

Explanation:

Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows

Payback period =  Amount invested / cash flow = $320,000  / $65,000 = 4.92 years

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Internal rate of return is the discount rate that equates the after tax cash flows from an investment to the amount invested

NPV and IRR can be calculated using a financial calculator

Cash flow in year 0 = $-320,000

Cash flow each year from year 1 to 8 = $65,000

I = 10%

NPV = $26,770.20

IRR = 12.26%

profitability index = 1 + (NPV / Initial investment) = 1 + ($26,770.20 / $320,000 ) = 1.0837

The project should be accepted because the NPV and profitability index are positive. the IRR is greater than the discount rate. this means that the project is profitable. Accounting rate of return = Average net income / Average book value

Average book value = (cost of equipment - salvage value) / 2 = $320,000 / 2 = $160,000

$25,000 / $160,000 = 0.156 = 15.6%

To find the NPV using a financial calculator:

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  

To find the IRR using a financial calculator:

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 IRR button and then press the compute button.  

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You pay for cheese and bread from the deli with currency. which function of money does this best illustrate? medium of exchange
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Answer:

Demand drops to zero

Explanation:

Infinite elasticity of demand is also called perfect elasticity of demand.

In this scenario the demand for a product is attached to it's price.

There is an infinite change in the quantity demanded as a result of change in price.

Graphically it is a horizontal demand curve as represented in the attached

Even a small increase in price will cause demand to fall to zero.

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4 0
3 years ago
Moerdyk Corporation’s bonds have a 15-year maturity, a 7.25% semiannual coupon, and a par value of $1,000. The going interest ra
azamat

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The price of the bonds is $ 1,276.

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Annuity factor = (1- (1+i%)^-n)/i% = (1- (1+5%/2)^-30)/(5%/2) = 20.9303

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