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Cloud [144]
3 years ago
6

The 2017 balance sheet of Kerber’s Tennis Shop, Inc., showed long-term debt of $1.87 million, and the 2018 balance sheet showed

long-term debt of $2.21 million. The 2018 income statement showed an interest expense of $255,000. What was the firm’s cash flow to creditors during 2018?
Business
2 answers:
bezimeni [28]3 years ago
8 0

Answer:

Cash flow to creditors in 2018 is −$85,000

Explanation:

2017 balance sheet of Kerber’s Tennis Shop, Inc is recorded as

Interest paid............................................................................$255,000

Less:

long-term debt in 2018.........................................................$2.21 million

Less: long-term debt brought forward from 2017..........$1.87 million

Total (taken as net new borrowing)...................................$340,000

Cash flow to creditors = 2018 Interest expense less net new borrowing

= $255,000 - $340,000

= −$85,000

REY [17]3 years ago
5 0

Answer:

The cash flow for Kerber's tennis shop for the year 2018 to creditor's is -$85,000

Explanation:

Balance sheet of Kerber’s Tennis Shop for 2017, Inc is recorded as follows

Given that.

Interest paid = $255,000

Less:

long-term debt in 2018$ = 2.21 million

Less:

long-term debt brought forward from 2017 = $1,870,000 million

Total (taken as net new borrowing)

= $2,210,000- $1,870,000

= $340,000

Cash flow to creditors = 2018 Interest expense less net new borrowing

= $255,000 - $340,000

= −$85,000

We have -$85,000 as the cash flow to creditors during 2018

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Aleks [24]

1800 units are the reorder point.

Option B. 1800 units.

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So

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Reorder Point. = 1800 unit

A reorder point (ROP) is a specific level at which inventory needs to be replenished. That means it will tell you when to order so you don't run out of stock.

Reorder Point formula is Lead Time Requirement + Safety Stock. Of course, to do an accurate calculation, you need to determine your lead time and safety stock needs.

Berkshire Ltd. sells 900 hard drives per week. Purchase-order lead time is 2 weeks and the economic-order quantity is 1625 units. What is the reorder

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d. 3250 units

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3 0
1 year ago
FaveMart, a discount chain store, offers the same basic products in all of its stores. It has a state-of-the-art distribution ne
Nikolay [14]

Answer:

c. production orientation  

Explanation:

Production orientation approach for innovation -

It refers to the method of production , the quality of product is very important , as a good quality product is sold very easily , is referred to as production orientation approach .

The concept is used along with targeting the right area of audience , in order to produce the best products , and the targeted consumers can efficiently use them , which will increase the demand of the product , and hence , the profit of the company will increase .

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4 0
3 years ago
The 5.3 percent bond of Dominic Cyle Parts has a face value of $1,000, a maturity of 12 years, semiannual interest payments, and
givi [52]

Answer:

$936.17

Explanation:

The current market price of the bond = present value of all coupon received + present value of face value on maturity date

The discount rate in all calculation is YTM (6.12%), and its semiannual rate is 3.06%

Coupon to received semiannual = 5.3%/2*$1000= $26.5

We can either calculate PV manually or use formula PV in excel to calculate present value:

<u>Manually:</u>

PV of  all coupon received semiannual = 26.5/(1+3.06)^1 + 26.5/(1+3.06)^2....+ 26.5/(1+3.06)^24 = $445.9

PV of of face value on maturity date = 1000/(1+6.12%)^12 = $490.27

<u>In excel:</u>

PV of  all coupon received semiannual =  PV(3.06%,24,-$26.5) = $445.9

PV of of face value on maturity date = PV(6.12%,12,-$1000) = 1000/(1+6.12%)^12 = $490.27

The current market price of the bond  = $445.9 + $490.27 = $936.17

Please excel calculation attached

Download xlsx
7 0
3 years ago
When union representatives negotiate with employers for better wages and working conditions, they are involved in __________?
kifflom [539]
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3 0
3 years ago
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slavikrds [6]

Answer: Option A

                       

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Worldwide can go for joint venture as it would be less costly then mergers and acquisitions since they have to buy a part of the entity also they can control the entity as per their share in it.

8 0
3 years ago
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