Finance: Cash available for distribution to the equity partners.
3) Given the following:
Net Operating Income | $ 900,000
|
Cost of Sale (Broker + Atty)
| 6 % |
Current Loan Balance | $ 2000,000
|
Loan to Value Ratio
| 75 % |
Capitalization Rate | 10.0 %
|
What is the cash available for distribution to the equity partners under each of the following scenarios?
a) The property is sold.
b) The property is refinanced.
Homework Answers
1) Cash available when property is sold:
= [9000,000 * 6%+ 9000,000 * 9.5%]
= 1395,000
2) Cash available if property is refinanced:
= 1395,000 + 9000,000 * 25% -2,000,000
= 1,645,000
3) Given the following: Net Operating Income Cost of Sale (Broker Atty) Current Loan Balance Loan...
3) Given the following: Net Operating Income Cost of Sale (Broker Atty) Current Loan Balance Loan to Value Ratio Capitalization Rate $ 900.000 6% $2.000.000 75% 10.0% What is the cash available for distribution to the equity partners under each of the following scenarios? a) The property is sold. b) The property is refinanced.
5. Cash was paid to the partners with credit balances. River Song records the distribution of...
5. Cash was paid to the partners with credit
balances.
River Song records the distribution of cash as follows.
12/31/12
A. Mangold Capital
301
S. Otis Capital
301
Cash
101
(to record distribution of cash to partners)
(b) Post to the cash and capital accounts.
Cash
101
date
Explanation
ref
Debit
Credit
Balance
12/31/12
beginning balance
12/31/12
J1
12/31/12
J1
12/31/12
J1
12/31/12
J1
RIVER SONG COMPANY Balance Sheet May 31, 2012 Assets Liabilities and Owners' Equity Cash $ 27,500...
1-5 mount of past earnings are available for distribution The Balance Sheet 77 ble for distribution...
1-5
mount of past earnings are available for distribution The Balance Sheet 77 ble for distribution to The Foxtail's owners at 7. What amount of the end of 20X2? Problem 15 balance sheets for Melton Corporation for the years ended December Below are the modified balan 31, 20X1 and 20X2 Assets Cash 20X1 $ 433 20X2 $ 38 101 348 218 595 2,696 (1,000) 52 $ 3,443 50 430 283 373 5.998 (1,300) 1,355 $ 7,577 517 6LS 150 Marketable...
question is PA12-9 un Distribution of rein bution of remaining cash to partners assuming Shasta pays...
question is PA12-9
un Distribution of rein bution of remaining cash to partners assuming Shasta pays the deficiency. bution of remaining cash to partners assuming Shasta does not pay the deficiency. 11124 Calculating pa LOS Gren, Bare, and Rett are part lculating Partner Return on Equity (ROE) Kett are partners in the GBR partnership. Information related to the partners follow Bare Rett Total Gren Balance 1/1/2008 Contributions $71,000 20,000 33,000 (30,000) $94,000 $30,000 5,000 11,000 (20,000) $26,000 $20,000 10,000 11,000...
The VWX Partnership is undergoing an installment liquidation. Partners Victor, Whitney and Xavier share income in...
The VWX Partnership is undergoing an installment liquidation. Partners Victor, Whitney and Xavier share income in a 3:5:2 ratio. The partnership balance sheet is as follows: Assets Cash - 7,000 AR - 10,000 Loan Rcvable (Victor) - 13,000 Inventory - 25,000 Buildings and equipment, net - 545,000 TOTAL ASSETS - 600,000 Liabilities AP - 20,000 Loan Payable (Whitney) - 50,000 TOTAL LIABILITIES - 70,000 Capital Victor - 100,000 Whitney - 250,000 Xavier - 180,000 TOTAL CAPITAL - 530,000 Your are...
Comparative Balance Sheet This Year Last Year Assets Current assets: Cash and cash equivalents Accounts receivable...
Comparative Balance Sheet This Year Last Year Assets Current assets: Cash and cash equivalents Accounts receivable Inventory Prepaid expense:s $61,000 $ 40,00e 530,000 860,00e 5,000 1,629,000 1,435,000 3,170,000 2,600,00e 755,000 2,360,000 1,845,000 110,000 170,000 $4,263,000 $3,560,006e 710,000 848, 000 10,000 Total current assets Property, plant, and equipment Less accumulated depreciation 810,00e Net property, plant, and equipment Long-term investments Loans to subsidiaries Total assets 60,000 214,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Income taxes payable $ 970,000...
Comparative Balance Sheet Ending Beginning Balance Balance Assets Current assets: $ 52 $ 51 Cash and...
Comparative Balance Sheet Ending Beginning Balance Balance Assets Current assets: $ 52 $ 51 Cash and cash equivalents Accounts receivable 84 83 63 61 Inventory 198 196 Total current assets Property, plant, and equipment 702 560 261 294 Less accumulated depreciation 266 441 Net property, plant, and equipment $639 $462 Total assets Liabilities and stockholders' equity: Current liabilities: $ 58 Accounts payable $62 Accrued liabilities 35 34 Income taxes payable 63 67 163 Total current liabilities 156 71 65 Bonds...
settlement by the partners. EXERCISE 16-10 Rights of Various Parties LO 3 The trial balance for...
settlement by the partners. EXERCISE 16-10 Rights of Various Parties LO 3 The trial balance for the MAD Partnership is as follows just before declaring bankruptcy. Cash Other Assets Liabilities Matt Loan Matt Capital Allen Capital Dave Capital $20,000 $100,000 $18,000 $10,000 $44,000 $30,000 $18,000 Partners share profits in the ratio 45:30:25. Required: A. Prepare a schedule to show how available cash would be distributed to the partners after creditors are paid in full. State which partner would receive the...
Cheryl Wilson, president of Rivers Company, considers $25,000 to be a minimum cash balance for operating...
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Use the following information for questions 1 and 2. On June 30, 2020, the Warls, Xin,...
Use the following information for questions 1 and 2. On June 30, 2020, the Warls, Xin, and Yates partnership had the following fiscal year-end balance sheet: Cash $ 4,000 Accounts payable $ 7,000 Accounts receivable 6,000 Loan from Xin 5,000 Inventory 14,000 Warle, capital(20%) 14,000 Plant assets-net 12,000 Xin, capital(30%) 10,000 Loan to Warls 6.000 Yates, capital(50%) 6,000 Total assets 42,000 Total liab,/equity $ 42,000 The percentages shown are the residual profit and loss sharing ratios. The partners dissolved the...
3) Given the following: Net Operating Income Cost of Sale (Broker Atty) Current Loan Balance Loan to Value Ratio Capitalization Rate $ 900.000 6% $2.000.000 75% 10.0% What is the cash available for distribution to the equity partners under each of the following scenarios? a) The property is sold. b) The property is refinanced.
5. Cash was paid to the partners with credit
balances.
River Song records the distribution of cash as follows.
12/31/12
A. Mangold Capital
301
S. Otis Capital
301
Cash
101
(to record distribution of cash to partners)
(b) Post to the cash and capital accounts.
Cash
101
date
Explanation
ref
Debit
Credit
Balance
12/31/12
beginning balance
12/31/12
J1
12/31/12
J1
12/31/12
J1
12/31/12
J1
RIVER SONG COMPANY Balance Sheet May 31, 2012 Assets Liabilities and Owners' Equity Cash $ 27,500...
1-5
mount of past earnings are available for distribution The Balance Sheet 77 ble for distribution to The Foxtail's owners at 7. What amount of the end of 20X2? Problem 15 balance sheets for Melton Corporation for the years ended December Below are the modified balan 31, 20X1 and 20X2 Assets Cash 20X1 $ 433 20X2 $ 38 101 348 218 595 2,696 (1,000) 52 $ 3,443 50 430 283 373 5.998 (1,300) 1,355 $ 7,577 517 6LS 150 Marketable...
question is PA12-9
un Distribution of rein bution of remaining cash to partners assuming Shasta pays the deficiency. bution of remaining cash to partners assuming Shasta does not pay the deficiency. 11124 Calculating pa LOS Gren, Bare, and Rett are part lculating Partner Return on Equity (ROE) Kett are partners in the GBR partnership. Information related to the partners follow Bare Rett Total Gren Balance 1/1/2008 Contributions $71,000 20,000 33,000 (30,000) $94,000 $30,000 5,000 11,000 (20,000) $26,000 $20,000 10,000 11,000...
Comparative Balance Sheet This Year Last Year Assets Current assets: Cash and cash equivalents Accounts receivable Inventory Prepaid expense:s $61,000 $ 40,00e 530,000 860,00e 5,000 1,629,000 1,435,000 3,170,000 2,600,00e 755,000 2,360,000 1,845,000 110,000 170,000 $4,263,000 $3,560,006e 710,000 848, 000 10,000 Total current assets Property, plant, and equipment Less accumulated depreciation 810,00e Net property, plant, and equipment Long-term investments Loans to subsidiaries Total assets 60,000 214,000 Liabilities and Stockholders' Equity Current liabilities: Accounts payable Accrued liabilities Income taxes payable $ 970,000...
Comparative Balance Sheet Ending Beginning Balance Balance Assets Current assets: $ 52 $ 51 Cash and cash equivalents Accounts receivable 84 83 63 61 Inventory 198 196 Total current assets Property, plant, and equipment 702 560 261 294 Less accumulated depreciation 266 441 Net property, plant, and equipment $639 $462 Total assets Liabilities and stockholders' equity: Current liabilities: $ 58 Accounts payable $62 Accrued liabilities 35 34 Income taxes payable 63 67 163 Total current liabilities 156 71 65 Bonds...
settlement by the partners. EXERCISE 16-10 Rights of Various Parties LO 3 The trial balance for the MAD Partnership is as follows just before declaring bankruptcy. Cash Other Assets Liabilities Matt Loan Matt Capital Allen Capital Dave Capital $20,000 $100,000 $18,000 $10,000 $44,000 $30,000 $18,000 Partners share profits in the ratio 45:30:25. Required: A. Prepare a schedule to show how available cash would be distributed to the partners after creditors are paid in full. State which partner would receive the...
Cheryl Wilson, president of Rivers Company, considers $25,000 to be a minimum cash balance for operating purposes. As can be seen from the following statements, only $20,000 in cash was available at the end of 2011. Because the company reported a large net income for the year, and also issued bonds and sold some long-term investments, the sharp decline in cash is puzzling to Ms. Wilson. Rivers Company Comparative Balance Sheet December 31, 2011, and 2010 2010 2011 Assets Current...
Use the following information for questions 1 and 2. On June 30, 2020, the Warls, Xin, and Yates partnership had the following fiscal year-end balance sheet: Cash $ 4,000 Accounts payable $ 7,000 Accounts receivable 6,000 Loan from Xin 5,000 Inventory 14,000 Warle, capital(20%) 14,000 Plant assets-net 12,000 Xin, capital(30%) 10,000 Loan to Warls 6.000 Yates, capital(50%) 6,000 Total assets 42,000 Total liab,/equity $ 42,000 The percentages shown are the residual profit and loss sharing ratios. The partners dissolved the...
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