If a business is planning to take out a loan during 2017, it needs to do...
If a business is planning to take out a loan during 2017, it needs to do which of the following things?
A. Add the value of the loan to its long-term debt on the balance sheet.
B. Add the loan amount obtained into its schedule of cash receipts for the month the loan is received.
C. Adjust its schedule of cash disbursements to reflect additional interest and principal payments in the months following the loan's origination.
D. all of the above
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If a business is planning to take out a loan during 2017, it
needs to do...
Harry's Carryout Stores has eight locations. The firm wishes to expand by two more stores and needs a bank loan to do t...
Harry's Carryout Stores has eight locations. The firm wishes to expand by two more stores and needs a bank loan to do this. Mr. Wilson, the banker, will finance construction if the firm can present an acceptable three-month financial plan for January through March. The following are actual and forecast sales figures: Actual Forecast Additional Information November $240,000 January $320,000 April forecast $360,000 December 260,000 February 360,000 March 370,000 Of the firm's sales, 60 percent are for cash and the...
When the loan is first obtained, $300,000 will be posted in the long- term debt account...
When the loan is first obtained, $300,000 will be posted in
the long- term debt account and will appear on the balance sheet.
At the end of the first year, Sunnyvale will pay the bank a total
of $130,000, consisting of $30,000 interest on the loan and
$100,000 repayment on the principal portion of the loan. The
$30,000 interest expense, which is paid to the bank for the use of
its money, appears as an expense on the income statement....
Cash disbursements schedule Maris Brothers, Inc., needs a cash disbursement schedule for the months of April,...
Cash disbursements schedule Maris Brothers, Inc., needs a cash disbursement schedule for the months of April, May, and June. Use the format given here and the following information in its preparation. Sales: February $481,000; March $510,000; April $562,000; May $594,000; June $626,000; July $658,000 Purchases: Purchases are calculated as 56% of the next month's sales, 10% of purchases are made in cash, 51% of purchases are paid for 1 month after purchase, and the remaining 39% of purchases are paid...
The firm wishes to expand by tao more stores and neods a bank loan to do...
The firm wishes to expand by tao more stores and neods a bank loan to do this. Mr. Wison, the banker, will finance construction if the firm can present an acceptable three-month financial plan for January through March. The following are actual and forecasted sales figures: Actual Forecast Addiiona November$680,000 Janwary $760,000 Apni forecast December700,000 February 800,000 $580,000 March 590,000 45 percent are for cash and the remaining 55 percent are on credit. Of credit sales, 40 percent are paid...
During the last week of August, Oneida Company's owner approaches the bank for a $108,000 loan...
During the last week of August, Oneida Company's owner approaches the bank for a $108,000 loan to be made on September 2 and repaid on November 30 with annual interest of 12%, for an interest cost of $3,240. The owner plans to increase the store's inventory by $60,000 during September and needs the loan to pay for inventory acquisitions. The bank's loan officer needs more information about Oneida's ability to repay the loan and asks the owner to forecast the...
Cash disbursements schedule Maris Brothers, Inc., needs a cash disbursement schedule for the months of April,...
Cash disbursements schedule Maris Brothers, Inc., needs a cash disbursement schedule for the months of April, May, and June. Use the format given here i and the following information in its preparation. Sales: February $505,000; March $522,000; April $575,000; May $597,000; June $653,000; July $643,000 Purchases: Purchases are calculated as 65% of the next month's sales, 10% of purchases are made in cash, 47% of purchases are paid for 1 month after purchase, and the remaining 43% of purchases are...
During the last week of August, Oneida Company’s owner approaches the bank for a $98,500 loan...
During the last week of August, Oneida Company’s owner
approaches the bank for a $98,500 loan to be made on September 2
and repaid on November 30 with annual interest of 10%, for an
interest cost of $2,463. The owner plans to increase the store’s
inventory by $60,000 during September and needs the loan to pay for
inventory acquisitions. The bank’s loan officer needs more
information about Oneida’s ability to repay the loan and asks the
owner to forecast the...
QUESTION I-CURRENT LIABILITIES continued... amptons Inc. has a calendar year-end. On January 2, 2017, Hamptons signed...
QUESTION I-CURRENT LIABILITIES continued... amptons Inc. has a calendar year-end. On January 2, 2017, Hamptons signed as year loan for 405,000 with annual interest of 4.5% per annum. Interest for the year is paid on December Equal annual payments of are $93.000 are due at the end of each year. The payment schedule is as follows: Balance as at Annual Principal Dec. 31 balance end payment Principal interest of year opening 2017 $ 465,000 $ 113,925 $ 93,000 $ 20,925...
Please help with part A and B. Please explain, I do not understand. Thank you! Fortner...
Please help with part A and B. Please explain, I do not
understand. Thank you!
Fortner Manufacturing has a cash balance of $10,000 on August 1 of the current year. The company's controller forecast the following cash receipts and cash disbursements for the upcoming two months of activity: Cash Cash Receipts $49,000 74,000 Payments $62,000 60,000 August September Management desires to maintain a minimum cash balance of $10,000 at all times. If necessary, additional financing can be obtained in $1,000...
Active Life Inc., a sports equipment retailer, needs to prepare a cash budget for the first...
Active Life Inc., a sports equipment retailer, needs to prepare a cash budget for the first quarter of 2018. The financial staff at Active Life has forecasted the following sales figures: January February March April May $100,000 $150,000 $300,000 $250,000 $150,000 Actual sales in October, November, and December 2017 were $125,000, $146,000, and $125,000, respectively. Cash sales are 40% of the total, and the rest are on credit. Under the current credit policy the firm expects to collect 60% of...
Harry's Carryout Stores has eight locations. The firm wishes to expand by two more stores and needs a bank loan to do this. Mr. Wilson, the banker, will finance construction if the firm can present an acceptable three-month financial plan for January through March. The following are actual and forecast sales figures: Actual Forecast Additional Information November $240,000 January $320,000 April forecast $360,000 December 260,000 February 360,000 March 370,000 Of the firm's sales, 60 percent are for cash and the...
When the loan is first obtained, $300,000 will be posted in
the long- term debt account and will appear on the balance sheet.
At the end of the first year, Sunnyvale will pay the bank a total
of $130,000, consisting of $30,000 interest on the loan and
$100,000 repayment on the principal portion of the loan. The
$30,000 interest expense, which is paid to the bank for the use of
its money, appears as an expense on the income statement....
Cash disbursements schedule Maris Brothers, Inc., needs a cash disbursement schedule for the months of April, May, and June. Use the format given here and the following information in its preparation. Sales: February $481,000; March $510,000; April $562,000; May $594,000; June $626,000; July $658,000 Purchases: Purchases are calculated as 56% of the next month's sales, 10% of purchases are made in cash, 51% of purchases are paid for 1 month after purchase, and the remaining 39% of purchases are paid...
The firm wishes to expand by tao more stores and neods a bank loan to do this. Mr. Wison, the banker, will finance construction if the firm can present an acceptable three-month financial plan for January through March. The following are actual and forecasted sales figures: Actual Forecast Addiiona November$680,000 Janwary $760,000 Apni forecast December700,000 February 800,000 $580,000 March 590,000 45 percent are for cash and the remaining 55 percent are on credit. Of credit sales, 40 percent are paid...
During the last week of August, Oneida Company's owner approaches the bank for a $108,000 loan to be made on September 2 and repaid on November 30 with annual interest of 12%, for an interest cost of $3,240. The owner plans to increase the store's inventory by $60,000 during September and needs the loan to pay for inventory acquisitions. The bank's loan officer needs more information about Oneida's ability to repay the loan and asks the owner to forecast the...
Cash disbursements schedule Maris Brothers, Inc., needs a cash disbursement schedule for the months of April, May, and June. Use the format given here i and the following information in its preparation. Sales: February $505,000; March $522,000; April $575,000; May $597,000; June $653,000; July $643,000 Purchases: Purchases are calculated as 65% of the next month's sales, 10% of purchases are made in cash, 47% of purchases are paid for 1 month after purchase, and the remaining 43% of purchases are...
During the last week of August, Oneida Company’s owner
approaches the bank for a $98,500 loan to be made on September 2
and repaid on November 30 with annual interest of 10%, for an
interest cost of $2,463. The owner plans to increase the store’s
inventory by $60,000 during September and needs the loan to pay for
inventory acquisitions. The bank’s loan officer needs more
information about Oneida’s ability to repay the loan and asks the
owner to forecast the...
QUESTION I-CURRENT LIABILITIES continued... amptons Inc. has a calendar year-end. On January 2, 2017, Hamptons signed as year loan for 405,000 with annual interest of 4.5% per annum. Interest for the year is paid on December Equal annual payments of are $93.000 are due at the end of each year. The payment schedule is as follows: Balance as at Annual Principal Dec. 31 balance end payment Principal interest of year opening 2017 $ 465,000 $ 113,925 $ 93,000 $ 20,925...
Please help with part A and B. Please explain, I do not
understand. Thank you!
Fortner Manufacturing has a cash balance of $10,000 on August 1 of the current year. The company's controller forecast the following cash receipts and cash disbursements for the upcoming two months of activity: Cash Cash Receipts $49,000 74,000 Payments $62,000 60,000 August September Management desires to maintain a minimum cash balance of $10,000 at all times. If necessary, additional financing can be obtained in $1,000...
Active Life Inc., a sports equipment retailer, needs to prepare a cash budget for the first quarter of 2018. The financial staff at Active Life has forecasted the following sales figures: January February March April May $100,000 $150,000 $300,000 $250,000 $150,000 Actual sales in October, November, and December 2017 were $125,000, $146,000, and $125,000, respectively. Cash sales are 40% of the total, and the rest are on credit. Under the current credit policy the firm expects to collect 60% of...
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