She also has the possibility of taking an unsecured loan from her own bank of £3000 where the variable APR charged is currently 12 per cent. Panna has also just received a letter from a different bank to apply for a credit card on which the variable interest rate on new purchases for the first four months would be 0 per cent p.a. and would then rise to the normal variable rate (currently the normal rate is 18 per cent p.a.). • Panna could use all her savings to fund the purchase of the furniture outright. State one advantage and one disadvantage of this course of action.
Problem: P22-6, Accounting Change and Error Analysis Course: AC557 Intermediate Accounting III "On December 31, 2010, before the books were closed, the management and accountants of Madrasa Inc. made the following determinations about three depreciable assets." 1. Depreciable asset A was purchased January 2, 2007. It originally cost $540,000 and, for depreciation purposes, the straight-line method was originally chosen. The asset was originally expected to be useful for 10 years and have a zero salvage value.
The accruals currently (that is, at the end of 1992) consist of $5 million of accrued taxes and $2,331,000 of accrued wages. The wages were all earned within the past two weeks, and no single employee is due more than $2,000. A long-term bank loan actually consists of two different loans: $5 million in straight unsecured debt, plus another $4,563,000 in loans that are subordinate to the $5 million loan. Weels Fargo, extended both the short-term loan and the senior long-term loan, while a competitor bank holds the subordinated note for $4,563,000. Mayo estimates that the administrative expenses for the trustee in bankruptcy would total $600,000 – this amount would be “taken off the top” in any liquidation or reorganization procedure.
George and Dora have enough for only one month. Savings ratio is the percentage of gross income saved each month. It is recommended to save between 5-10 percent. Currently George and Dora are not even saving a full 3 percent. Recommendations George and Dora can mend both the liquidity and savings ratio with one solution.
Situation: • Erica Carson is PM for Wesbank, a financial institution (note: You are Erica) o Reports to VP Supply • Unsolicited bid from Art Evans, Sales Rep. Killoran Inc. o 10% reduction on printing and mailing of checks o not current supplier • Westbank provides free checks at a cost of $8M per year • Current situation – 50% split suppliers, last 5 years o Supplier A prints and mails 50% checks, renewed contract 8 months ago o Supplier B prints and mails 50% checks, contract expires in 4 months o Each 2 year contract, good quality and service o Costs studied one year ago, determined pricing was fair BASIC ISSUES; (note - tie to elements from textbook) 1. Purchasing for a service organization. 2. The price, quality, delivery, service trade-off. 3.
Both monies pooled together after taxes add together the sum of £1626.56. With outgoings at £1140 and £1625 pooled together there is a difference of £405 which split between the two girls would be a total of £202.50. Using the online household equivalence calculator this compensates Praveena’s loss of income by 37%. Case study 2 Casper is in the process of paying for his holiday which will cost him £2000, he is considering what to do? If Casper decided to take out a loan that charges 20% APR over one year for the amount of £2000 over 12 months he would expect to pay £183 per month for 12 months with interest of £205.
d. neither party. 44. Lem buys a used MP3 player for $50 and a new laptop for $1,500, and signs a one-year employment contract for a $4,000 monthly salary to start at the beginning of the next month. The Statute of Frauds covers a. the employment contract, and the laptop and MP3 purchases. b. the employment contract and the laptop purchase only.
Not owing anything, and having already low income, Mary should file for the American Opportunity Credit. Mary’s credit is calculated based on her tuition. 100 percent of the first $2000 of tuition expenses, plus 25 percent of the next $2000 of tuition expenses, calculates Mary’s education credit totaling the maximum amount of $2500. In Mary’s case, there is no need to lower an AMT liability, so Mary will be refunded 40% of this credit. Mary will end up with her income tax refund from her annual salary plus another $1000 refund from the American Opportunity Credit (.4 x $2500=
The bond will pay no interim coupon payments. What is the present value of the bond if the discount rate is 10 percent? 5. A firm has an estimated pension liability of $1.5 million due 27 years from today. If the firm can invest in a risk-free security with an interest rate of eight percent, how much must the firm invest today to be able to make the $1.5 million payment?