How does working capital impact a firm’s value?

o-na [289]

Based on the information given, it can be deduced that the annual percentage rate (APR) is 24%.

The annual percentage rate simply means the yearly interest that's generated by a sum that's charged to a borrower. In this case, the APR is 24% after 6 months.

Also, the credit cards that have an annual fee will be credit card 2 and 3. It can also be deduced that the grace period is the same for the three credit cards while credit 3 has a membership.

If one pays the credit card bill on time and the balance each month, the best credit card is credit card 1. Lastly, when one has a balance from time to time credit card 1 is still the best.

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8 0

3 years ago

Four companieslong dash—A, B, C, and Dlong dash—have revenues of 1, 2, 3, and 4, respectively. Company C develops a BCG Mat

AVprozaik [17]

Answer:

If all the four firms have same net income then RMSP for company C will be 0.30.

Explanation:

The BCG matrix (Boston Consulting group's product portfolio matrix) is used for doing strategic planning for long-term. It looks into how business growth will be possible by looking at portfolio of products and then decides where to invest, or which product to discontinue. It says that if the market share of the product is higher, it would be more beneficial for the company.

In the given problem, all the four companies A,B,C,D have revenues 1,2,3,4 respectively. We calculate Relative market share or RMSP by subtracting a company's market share from 100 to find the percentage it does not control. So, RMSP for Company C would be 0.30.

7 0

3 years ago

n applying the lower of cost or market rule, the inventory of rehab equipment would be valued at: A) $315. B) $247. C) $150. D)

Dominik [7]

Answer:

D) $235.

Explanation:

As we know that the inventory should be valued at cost or market value whichever is lower

In the given case

Selling price = $340

Net realizable value is

= Selling price - cost of sell

= $340 - $25

= $315

Replacement cost is $235

Cost = $250

As we can see that the replacement cost is less than the cost so the replacement cost should be valued i.e $235

4 0

3 years ago

On November 7, 2017, Mura Company borrows $160,000 cash by signing a 90-day, 8% note payable with a face value of $160,000. (Use

horsena [70]

Answer:

(1) $1,920

Explanation:

(1) Accrued interest payable on December 31, 2017:

= Principle × Rate × Time period

= $160,000 × 8% × (54 ÷ 360)

= $1,920

The Journal entries are as follows:

(2) On December 31, 2017

Interest Expense A/c Dr. $1,920

To interest payable $1,920

(To record the accrued interest expense)

(3) On February 05, 2018

Notes payable A/c Dr. $160,000

Interest Expense A/c Dr. $1,920

Interest payable A/c Dr. $1,280

To cash A/c $163,200

(To record the payment of notes and interest)

Working notes:

cash:

= $160,000 + [$160,000 × 8% × (90 ÷ 360)]

= $1,280

3 0

4 years ago

I need to find the answer to this problem

Roman55 [17]

Im pretty sure its B.

8 0

3 years ago