Points and freind requsts

The 2017 balance sheet of Kerber’s Tennis Shop, Inc., showed long-term debt of $2.6 million, and the 2018 balance sheet showed l

netineya [11]

Answer:

cash flow = - $780000

Explanation:

given data

2017 debt = $2.6 million

2018 debt = $3.75 million

interest expense = $370,000

to find out

What was the firm's cash flow to creditors

solution

first we get net new debt that is express as

Net new deb = 2018 debt - 2017 debt .....................1

Net new debt = $3.75 million - $2.6 million

Net new debt = $1.15 million

so

cash flow to creditors will be here as

cash flow = Interest expense - Net new debt .............2

cash flow = $370,000 - $1.15 million

cash flow = - $780000

6 0

3 years ago

Government policymakers decided to reduce the rate of inflation from 3% to 1.6%. As a result, the unemployment rate increased fr

andreyandreev [35.5K]

Answer:

Government policymakers decided to reduce the rate of inflation from 3% to 1.6%. As a result, the unemployment rate increased from 4.8% to 6.2%. The sacrifice ratio is:______

d. none of the above

Explanation:

a) Data and Calculations:

Old inflation rate = 3%

New inflation rate = 1.6%

Old unemployment rate = 4.8%

New unemployment rate = 6.2%

Ratio of old inflation rate to old unemployment rate = 3 : 4.8 = 0.625

Ratio of new inflation rate to new unemployment rate = 1.6% : 6.2% = 0.258

Sacrifice ratio = Difference between the two ratios = 0.367 (0.625 - 0.258)

b) The sacrifice ratio is the difference between the old ratio and the new ratio of inflation rate to unemployment rate.

6 0

3 years ago

What have you heard or read about health insurance?

Amiraneli [1.4K]

Answer:

Health insurance is a type of insurance that covers medical expenses that arise due to an illness. These expenses could be related to hospitalisation costs, cost of medicines or doctor consultation fees.

Health insurance provides financial protection in case you have a serious accident or illness. ... Health coverage can help protect you from high, unexpected costs. With Marketplace coverage, you'll get access to preventive services — like shots and screening tests — at no cost to you

7 0

3 years ago

Identify the inventory costing method best described by each of the following sepatate statements. Assume a period of increasing

MrMuchimi

Answer:

1. Yields a balance sheet inventory amount often markedly less than its replacement cost. LIFO

2. Results in a balance sheet inventory amount approximating replacement cost. FIFO

3. Provides a tax advantage (deferral) to a corporation when costs are rising. LIFO

4. Recognizes (mulches) recent costs against net sales. LIFO

5. The preferred method when each unit of product has unique features that markedly effect cost. WEIGHTED AVERAGE

Explanation:

1. LIFO yields a balance sheet inventory amount often markedly less than its replacement cost. The reason is because the in a period of rising costs, since the last stock of goods bought are sold first, this will result in the remaining stock of goods to be of lower costs as they had been bought at an earlier date at a cheaper rate.

2. FIFO results in a balance sheet inventory amount approximating replacement cost because the first set of goods purchased are sold first; and if the assumption holds that costs are rising with time, then the balance stock of goods would have been bought at a later date at a higher cost, hence the value of the balance (ending) inventory will be almost equal to its replacement cost.

3. LIFO provides a tax advantage (deferral) to a corporation when costs are rising because it results in a lower ending inventory value since the more expensive inventory has been sold. Hence, the closing stock and Net income will be low and income tax will be low.

4. LIFO matches recent costs against net sales because the 'cost of sales' are made up of the recent purchases which are sold first

5. The preferred method when each unit of product has unique features that markedly effect cost is the WEIGHTED AVERAGE because it calculates the average period cost of all goods in stock and apportions the total to individual items.

6 0

3 years ago

Culver Company has the following securities in its portfolio on December 31, 2017. None of these investments are accounted for u

SIZIF [17.4K]

Answer:

unrealized loss (OCI) 500 debit

trading securities- wallace 5,200 debit

trading securities gordon 4.200 credit

trading securities - martin 1,600 credit

cash 66,300 debit

loss on investment 6,900 debit

trading securities - gordon 73,200 credit

--to record sale of gordon securties --

trading securities earnhart corp 53,800 debit

cash 53,800 credit

--to record purchase of earnhart--

unrelized loss(OCI) 7,100 debit

trading securities earnhart corp 3,700 credit

trading securities- wallace 3,400 credit

-- 2018 year-end adjustment--

Explanation:

gordon 77,600 - 73,200 = (4,100)

wallace 172,900 - 167,700 = 5,200

martin 63,500 - 65,100 = (1,600)

Total adjustment (500)

We will declare as other comprehensive incoem the unrealized loss of 500 dollar for the period

At sale date we compare the proceeds and the cost to check for the earning or losses:

1,500 shares x $45 each less 1,200 fees = 66,300

gordon shares book value (73,200)

loss on investment 6,900

Earnhart corp:

700 shares x $75 each plus 1,300 fees: 53,800

year-end adjusting 2018

earnhart 50,100 - 53,800 = (3,700)

wallace 61,700 - 65,100 = (3,400)

martin 167,700 - 167,700 = 0

unrealized loss (7,1 00)

3 0

4 years ago