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natima [27]
2 years ago
7

BrambleFurniture Company started construction of a combination office and warehouse building for its own use at an estimated cos

t of $8,000,000 on January 1, 2020. Bramble expected to complete the building by December 31, 2020. Bramble has the following debt obligations outstanding during the construction period. Construction loan-12% interest, payable semiannually, issued December 31, 2019 $3,200,000 Short-term loan-10% interest, payable monthly, and principal payable at maturity on May 30, 2021 2,240,000 Long-term loan-11% interest, payable on January 1 of each year. Principal payable on January 1, 2024 1,600,000 (a) Assume that Bramble completed the office and warehouse building on December 31, 2020, as planned at a total cost of $8,320,000, and the weighted-average amount of accumulated expenditures was $5,760,000. Compute the avoidable interest on this project
Business
1 answer:
Ede4ka [16]2 years ago
4 0

Answer:

$650,752

Explanation:

The computation of the avoidable interest is shown below;

But before that following calculations must be done

Interest payable on short term loan

= $2,240,000 ×  10%

= $224,000

Interest payable on long term loan

= $1,600,000 × 11%

= $176,000

Therefore,

Weighted average interest rate is

= ($224,000 + $176,000) ÷ ($2,240,000 + $1,600,000) × 100

= 10.42%

Now

Avoidable interest is

= [$3,200,000 ×  12%] + [($5,760,000 - $3,200,000) × 10.42%]

= $650,752

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Answer:

5.61 years

Explanation:

Let the Present value be 'x'

Data provided in the question:

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Now,

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on taking log on both the sides , we get

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or

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8 0
3 years ago
Suppose your company sells services of $170 in exchange for $130 cash and $40 on account. Depreciation of $60 relating to equipm
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Answer and Explanation:

Q2) Calculate the amount that should be reported as net cash flow from operating activities:

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Since there is an in Account Receivables therefore it will be negative

Since depreciation is a non cash expense, therefore, it will be added

$60 - $40 = $20 (Net Cash flow from operating activities)

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Net Income = $110

Q4)

Net inome = $170

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Increase in Accounts Receivables = ($40)

Net Cash flow from operating activities = $190

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What are the portfolio weights for a portfolio that has 130 shares of Stock A that sell for $40 per share and 110 shares of Stoc
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Answer:portfolio Weight of A =0.6118; portfolio Weight of B=0.3882

Explanation:

stock A  Investment = Number of shares x market value

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Total Investments= $5200 +  $3,300  = $8,500

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portfolio Weight of A= 5200/ 8,500 =0.6118

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