Snow Mountain Resort had a beginning cash balance of $9,720 for the quarter. During the quarter, the firm had cash collections of $157,311, wages and other cash expenses of $67,900, payments on account of $57,412, and dividends paid of $2,500. The minimum cash balance was just set at $1,200. The beginning short-term debt is $28,000 with a quarterly interest rate of 1.4 percent. At quarter end, the cumulative surplus (deficit) is __________ and the ending short-term debt is __________.
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Snow Mountain Resort had a beginning cash balance of $9,720 for the quarter. During the quarter, the firm had cash collections of $157,311, wages and other cash expenses of $67,900, payments on account of $57,412, and dividends paid of $2,500. The minimum cash balance was just set at $1,200. The beginning short-term debt is $28,000 with a quarterly interest rate of 1.4 percent. At quarter end, the cumulative surplus (deficit) is __________ and the ending short-term debt is __________.
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- Rich Company's cash balance on January 1st is $110,000 and they want to keep a minimum balance of at least $40,000 at all times. The company will borrow and repay funds in increments of $1,000 at a interest rate of 6% per annum. All borrowings happen on the first day of the period in which the funds are required and all repayments occur on the last day of the period in which funds are available. Assume interest on borrowings is only paid at the time principal repayments are made. There are no cash sales and the beginning balance of recelvable is expected to be collected in the 1st quarter and is $155,000. Subsequent collections are 55% in the quarter when sales take place and 40% in the following quarter. The sales forecast for the coming quarters shows the following: 1st quarter $600,000 and 2nd quarter $750,000. Direct materials of $225,000 and $285,500 are purchased and paid for in the 1st and 2nd quarter. Direct labour of $320,000 and $270,000 is incurred and paid for in the 1st…Medwig Corporation has a DSO of 27 days. The company averages $9,750 in sales each day (all customers take credit). What is the company's average accounts receivable? Assume a 365-day year. Round your answer to the nearest dollar.Holiday Tree Farm has a cash balance of $34 and a short-term loan balance of $180 at the beginning of Qt. The net cash inflow for the first quarter is $36 and for the second quarter there is a net cash outflow of $48. All cash shortfalls are funded with short-term debt. The firm pays 2 percent of its prior quarter's ending loan balance as interest each quarter. The minimum cash balance is $20. What is the short-term loan balance at the end of Q2? Multiple Choice $184.3 $179.2 $138.6 $128.4 $1931
- Oldhat Financial starts its first day of operations with $9 million in capital. A total of $125 million in checkable deposits are received. The bank makes a $15 million commercial loan and another $50 million in mortgages, with the following terms: 200 standard 30-year, fixed-rate mortgages with for $250,000. Assume that required reserves are 8%. nominal annual rate of 5.25%, each Complete the bank's balance sheet provided below. (Round your responses to the nearest whole number.) Assets Liabilities Required reserves million Checkable deposits million Excess reserves 2$ million Bank capital million Loans $ millionMedwig Corporation has a DSO of 24 days. The company averages $7, 750 in sales each day ( all customers take credit). What is the company's average accounts receivable? Assume a 365 day year. Round your answer to the nearest dollar. $Sterling Inc. has two long-term notes outstanding. One is a five-year note for $50,000. An equal amount of principal must be repaid each year of the loan. The other is a seven-year note for $210,000. In the next calendar year, the company will pay $21,000 of the principal. What is total amount of the notes that will be reported as current liabilities on its balance sheet? Oa. $229,000 Ob. $31,000 Oc. $71,000 Od. $40,000
- Colson Company has a line of credit with Federal Bank. Colson can borrow up to $315,500 at any time over the course of the calendar year. The following table shows the prime rate expressed as an annual percentage along with the amounts borrowed and repaid during the first four months of the year. Colson agreed to pay interest at an annual rate equal to 2.00 percent above the bank's prime rate. Funds are borrowed or repaid on the first day of each month. Interest is payable in cash on the last day of the month. The interest rate is applied to the outstanding monthly balance. For example, Colson pays 6.25 percent (4.25 percent + 2.00 percent) annual interest on $76.000 for the month of January. Month January February March April Amount Borroed or (Repaid) $ 76,000 121,200 (20,900) 27,500 Prime Rate for the Month 4.25% 3.25 3.75 4.25 Required a. Compute the amount of interest that Colson will pay on the line of credit for the first four months of the year. b. Compute the amount of…Accounts receivable in the amount of $658,000 were assigned to the Fast Finance Company by Sunland, Inc., as security for a loan of $564,000. The finance company assessed a 4% finance charge on the face amount of the loan, and the note bears interest at 8% per year.During the first month, Sunland collected $366,600 on assigned accounts. This amount was remitted to the finance company along with one month's interest on the note.Make all the entries for Sunland Inc. associated with the transfer of the accounts receivable, the loan, and the remittance to the finance company. (Credit account titles are automatically indented when the amount is entered. Do not indent manually. Round answers to 0 decimal places, e.g. 5,275.) Account Titles and Explanation Debit Credit (To record the transfer of the accounts receivable.) (To record the loan amount…Colson Company has a line of credit with Federal Bank. Colson can borrow up to $436,000 at any time over the course of the calendar year. The following table shows the prime rate expressed as an annual percentage along with the amounts borrowed and repaid during the first four months of the year. Colson agreed to pay interest at an annual rate equal to 2.00 percent above the bank's prime rate. Funds are borrowed or repaid on the first day of each month. Interest is payable in cash on the last day of the month. The interest rate is applied to the outstanding monthly balance. For example, Colson pays 6.25 percent (4.25 percent +2.00 percent) annual interest on $77,700 for the month of January. Amount Borrowed Prime Rate for the Month Month January February March April or (Repaid) $ 77,700 4.25% 120,700 (16,500) 28,400 3.25 3.75 4.25 Required a. Compute the amount of interest that Colson will pay on the line of credit for the first four months of the year. b. Compute the amount of…
- Colson Company has a line of credit with Federal Bank, Colson can borrow up to $386,000 at any time over the course of the calendar year. The following table shows the prime rate expressed as an annual percentage along with the amounts borrowed and repaid during the first four months of the year. Colson agreed to pay interest at an annual rate equal to 2.50 percent above the bank's prime rate. Funds are borrowed or repaid on the first day of each month. Interest is payable in cash on the last day of the month. The interest rate is applied to the outstanding monthly balance. For example, Colson pays 6.25 percent (3.75 percent + 2.50 percent) annual interest on $81,000 for the month of January. Month January February March April Amount Borrowed or (Repaid). $ 81,000 117,900 (24,400) 27,600 Required a. Compute the amount of interest that Colson will pay on the line of credit for the first four months of the year. b. Compute the amount of Colson's liability at the end of each of the first…During the first month, Marsh collected P260,000 on assigned accounts. This amount charged a 4% commission on the face amount of the loan, and the note bears interest at Company by Marsh, Inc., as security for a loan of P400,000. The finance company Accounts receivable in the amount of P500,000 were assigned to the Fast Finance PROBLEM 2 9% per year. During the first month, Marsh collected P260.000 on assigned accounts. This a was remitted to the finance company along with one month's interest on the note. de? Instructions Make all the entries for Marsh Inc. associated with the transfer of the accounts receivabie. the loan, and the remittance to the finance company.A company has assumed a debt of $45,000,000 to be paid in quarterly installments (at the end of each quarter) for 2 years. The accepted interest rate is 8% semiannually with quarterly compounding. You believe that at the end of the first 12 months of the debt, the company will have liquidity problems and therefore you are thinking of paying only interest on that installment (12-month installment).The General Manager asks you to prepare a report stating:(a) Installment value of the debt using the fixed installment method.b) Determine the value that will amortize the principal if the entire installment is paid in month 12.c) Determine the value that will be paid for interest in month 12.d) Verify the results obtained above, preparing the debt amortization table.