1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
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

You might be interested in
Common stock holders: Group of answer choices have one vote in the election of how the company operates. are last in line to rec
enot [183]

Answer:

are last in line to receive income.

Explanation:

Common stock holders are referred to as the owners of the company. They own shares that gives them the right to vote in a company's general meeting, receive dividends, and they have the right to get newly issued shares in the company before others.

However they are also called unsecured creditors of the company because when the business makes income they are the last in line to receive dividends if any remains.

Also in the case of bankruptcy preference share holders and other creditors are paid first. Common share holders are paid last.

5 0
2 years ago
Holding all other things constant, when the price level rises, interest rates:
SashulF [63]
The interest rate will also increase and firms will want to borrow less for new plants and gear and households will want to borrow less for homebuilding. And in addtion to that interest rate is the amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.
5 0
3 years ago
If a corporation pays $3 per share in annual dividends for each of the ten shares you purchase for $50 each what is the ROI
DENIUS [597]

If a corporation pays $3 per share in annual dividends for each of the ten shares you purchase for $50 each then the ROI is 2$.

<h3>How is ROI calculated?</h3>

An investment's return on investment (ROI) provides a general indication of its profitability. In order to calculate ROI, subtract the investment's initial cost from its final value, divide the result by the cost of the investment, and then multiply the result by 100.

<h3>What Constitutes a Solid ROI?</h3>

For an investment in stocks, a yearly ROI of 7% or more is typically regarded as a respectable ROI. This also refers to the average annual return of the S&P 500 after accounting for inflation.

To know more about ROI visit:

brainly.com/question/28622693

#SPJ4

5 0
1 year ago
The Martinez Legal Firm (MLF) recently acquired a smaller competitor, Miller and Associates, which specializes in issues not pre
Vsevolod [243]

Answer:

increase

Explanation:

Transaction cost is the cost needed for every exchange. This cost can be external or internal. External transaction cost comes from the cost to do an exchange with a second party while internal cost comes from the company itself.  

The Martinez Legal Firm acquired a competitor so their business size will increase for sure. Larger businesses will become more complex and need more management. These will, in turn, increase the internal transaction cost.

6 0
3 years ago
Lois has a balance of $970 on a credit card with an APR of 24.2%, compounded monthly. About how much will she save in interest o
Aleks04 [339]

Answer:

Lois will save $152.51 when she wil transfer her balance.

Explanation:

Amount to be paid in 1 year for original credit card is given as

P_1^{'}=P*(1+r_1)^t

Here P^{'}_1 is the amount to be paid after P is the balance which is 970, r_1 is the APR for first credit card which is 24.2% and t is compounding frequency which is 12 so

P_1^{'}=P*(1+r_1)^t\\P_1^{'}=970*(1+\dfrac{24.2}{12}\%)^{12}\\P_1^{'}=970*(1.0207)^{12}\\P_1^{'}=970*1.2707\\P_1^{'}=\$1232.61

Similarly for the second one the values are calculated as

P_2^{'}=P*(1+r_2)^t\\P_2^{'}=970*(1+\dfrac{10.8}{12}\%)^{12}\\P_2^{'}=970*(1.108)^{12}\\P_2^{'}=970*1.1135\\P_2^{'}=\$1080.10

The differnce of the two values is calculated as

P_1'-P_2'=1232.61-1080.10\\Difference=\$ 152.51

The difference is $152.51 which she could save.

7 0
3 years ago
Read 2 more answers
Other questions:
  • How to find the slope from 2 points
    12·1 answer
  • Describe the process of coding a questionnaire. Is precoding a questionnaire a good idea? Why or why not?
    5·1 answer
  • J&amp;R Renovation, Inc., is trying to determine its cost of debt. The firm has a debt issue outstanding with 16 years to maturi
    14·1 answer
  • Who would certify the interoperability performance of a command and control system used by both the Army and the Navy?
    13·1 answer
  • A company exchanged land and cash of $4,500 for similar land. The book value and the fair value of the land were $89,800 and $10
    14·1 answer
  • Account balance of 1723.57 the interest rate of the account is 3.4% compounded daily. If the account was opened 9 years ago, wha
    13·1 answer
  • Which example could result in an investor losing their money?
    13·2 answers
  • Gullett Corporation had $34,000 of raw materials on hand on November 1. During the month, the Corporation purchased an additiona
    15·1 answer
  • The approach to decision making that involves soliciting input from a network of people outside of the organization is called
    12·1 answer
  • Grants Corporation prepared the following two income statements (simplified for illustrative purposes):
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!