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olga2289 [7]
2 years ago
12

Patel Inc. factors $6,000,000 of its accounts receivables with recourse for a finance charge of 3%. The finance company retains

an amount equal to 10% of the accounts receivable for possible adjustments. Patel estimates the fair value of the recourse liability at $300,000. What would be recorded as a loss on the transfer of receivables
Business
1 answer:
VMariaS [17]2 years ago
4 0

Answer:

the loss that should be recorded is $480,000

Explanation:

The computation of the amount that recorded as a a loss on the receivable transfer is shown below:

= Account receivable × finance charge + estimation of the  fair value of the recourse liability

= $6,000,000 × 3% + $300,000

= $180,000 + $300,000

= $480,000

hence, the loss that should be recorded is $480,000

We simply applied the above formula so that the correct value could come

And, the same is to be considered

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Answer:

C

Explanation:

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6 0
3 years ago
Consider the assets (in millions) of two banks, A and B. Both banks are funded by $120 million in deposits and $20 million in eq
Deffense [45]

Answer:

<em>Consider the assets (in millions) of two banks, A and B. Both banks are funded by $120 million in deposits and $20 million in equity. Which bank has the stronger liquidity position? Which bank probably has a higher profit?</em>

<em>Consider the assets (in millions) of two banks, A and B. Both banks are funded by $120 million in deposits and $20 million in equity. Which bank has the stronger liquidity position? Which bank probably has a higher profit?Bank A Asset</em>

<em>Consider the assets (in millions) of two banks, A and B. Both banks are funded by $120 million in deposits and $20 million in equity. Which bank has the stronger liquidity position? Which bank probably has a higher profit?Bank A AssetBank B Assets</em>

Explanation:

<em>Liquid assets are those assets which get converted immediately into cash, when the company need some cash in hand, they can sell the liquid assets in the market and get cash in hand. As they can sell their various securities to fulfill the need of cash.</em>

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3 years ago
Horizon inc., a local electronics manufacturing company, produces a significant amount of electronic waste every day. the compan
hram777 [196]

This scenario illustrates that Horizon has failed to fulfill its <u>"Legal responsibility".</u>


There are legal responsibilities for most private companies. They will differ contingent upon the idea of the business.  

To stay away from issues later on it is imperative to comprehend your commitments. It is critical to know your commitments and legal responsibilities for working a business. This can be perplexing in light of the fact that directions can apply to a wide range of regions of your business.You are in charge of guaranteeing you have the right business enlistments and that they are kept up and recharged.  

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3 years ago
Kelly Slater owns a parcel of land in Palm Springs and is considering two possible development options which both use his signat
expeople1 [14]

Answer:

d. Choose Option B because it has a higher NPV

Explanation:

The computation is shown below:

For Option A:

Investment = $10 million

Present Value of cash flows = Cash flow ÷ Discounting rate

= $2 ÷  10%

= $20 million

Now

NPV = $20 - $10

= $10 million

We know that

IRR is the rate at which the NPV will be zero

So,  2 ÷  r - 10 = 0

r = 20%

For Option B:

Investment = $50 million

Present Value of cash flows = $6.5 ÷  10% = $65 million

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we know that

IRR is the rate at which the NPV will be zero

So, 6.5÷ r -50 = 0

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Based on NPV, Option B should be selected as it contains higher NPV as compared to option A.

However, Based on IRR, Option A should be chosen as it contains higher IRR and a higher IRR represent a higher profit percentage

 

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3 years ago
Testing is used by many companies during the recruitment process. Tests could include aptitude, psychological, personality, inte
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Personality test is an assessment that provides insight into important but intangible information about candidates such as personality, values, and work preferences.

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2. Personality tests allow hiring managers to better understand how to keep individual employees engaged and motivated at work.

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4.Personality tests can reduce the chance of putting the wrong person in the wrong role (a mistake that can be costly)

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2.Money: Personality tests can be costly to administer.

3.Accuracy: While useful for gaining behavioral insight, personality tests are not always the best indicators of how successful an individual will be in a job

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