Therefore, USG’s board decided to proceed with a leveraged recapitalization on May 2, 1988. This proposed recapitalization would put the company under heavy debt obligations as some analysts suggested. The fact is that in order to proceed with this plan, the company would have to raise approximately $2.5 billion from Citibank, Bankers Trust, and Chemical Bank. These loans would be repaid over the next nine years. The banks require USG to lock in fixed rates for four years for 75% of the principal.
We estimated how many customers we need to breakeven each year. Cash flow Projection for five years Cash Flow Analysis Year 1 Beginning Balance $0 Capital $10,000 Revenue (10 Clients) 59,700 $66,700 Disposables Purchases 49,700 Administrative $7,400 (Advertising 200, Other costs 200, Airlines 1,000, Office 6000) Wages $4,000 (2,000 each for Benny and Janet) $61,100 Ending Balance $5,600 Year 2 Beginning Balance $5,600 Revenue (15 Clients) $89,550 $93,150
Industry Stock out rate of 8% 2. 50% customers choose not to buy in case of stock outs 3. Annual revenues of $800M 4. Gross margin of 50% Exhibit 2 depicts the impact of the consolidation of the warehouse operations. In this case, the only cost saving is approximately $500k.
It will be depreciated under MACRS using a 5-year recovery period. At the end of 5 years, the machine can be sold to net $400,000 before taxes. If this machine is acquired, it is anticipated that the following current account changes would result. Cash + $25,000 Accounts Receivable + 120,000 Inventories - 20,000 Accounts Payable + 35,000 Press B – This press is not as sophisticated as press A. It costs $640,000 and requires $20,000 in
(0.5 points) No. d. How many creditors have made inquiries about Jessie Robinson's credit? (0.5 points) 3 creditors. e. Do you think Jessie Robinson usually pays bills on time and in full? (1-2 sentences.
Set out the following balances in a published balance sheet, including all the titles and headings required. The company draws up accounts for the year ended 31 December 2013 Share capital 25,200 Retained profits 25,350 Cash 900 Trade creditors 4,800 Plant, property and equipment cost 128,850 Share premium 18,000 Stock 5,400 Trade debtors 2,400 Accruals for expenses 1,800 Prepayments for expenses 3,900 Bad debt provision 300 Loans over one year 6,000 Plant, property and equipment accumulated depreciation 60,000 QUESTION B1 - Credi Ltd is a company with a financial year-end at 30 September 2014 The company had two identical fixed assets at 30 September 2014. Prior to recording the depreciation charge for the year and the effects of fixed asset disposal, each had a cost of £250,000 and each an accumulated depreciation of £160,000. Each had a residual value of £10,000 and a six year life originally. On 30 September 2014, one of the fixed assets was sold for £75,000 in cash.
(0.5 points) no d. How many creditors have made inquiries about Jessie Robinson's credit? (0.5 points) 3 e. Do you think Jessie Robinson usually pays bills on time and in full? (1-2 sentences. 1.0 points) Yes from the papers im seeing Jessie did pay his bills on time and in full. f. Do you think Jessie Robinson's credit score would be great, normal, or poor?
Assume the original facts except that they also incurred a loss of $5,000 on the sale of some of their investment assets. What effect does the $5,000 loss have on their taxable income? The taxpayers deduction losses which is on the disposition of investment assets is only limited to $3,000. The Jacksons would only be allowed to deduct $3,000 of the $5,000 loss that is against their taxable income. The remaining $2,000 would have to carryover to next year.
[5 Points] (g) List 3 ways money obtained from reverse mortgage can be paid to the borrower [3 Points] (h) List 3 pros and 3 cons of a reverse mortgage. [6 Points] ** Be sure to provide ample evidence, documentation and source(s) of information gathered. Page 1 of 4 Part 2: A Case Study in Reverse Mortgages [30 points] Like many retirees, Warren (61) and Carol (68) Peake are facing tough times. Their fixed income from retirement funds is not enough to support their total monthly expenses –especially as their medical costs rise. They are exploring a Reverse Mortgage on their single family home.
12,897 b. 12,720 c. 42,400 d. Other 2. A local bank offers an account that pays 8%, compounded quarterly, for any deposits of $10,000 or more that are left in the account for a period of 5 years. The effective annual rate of interest on this account is: a. 4.65% b.