a) Your business uses cash it already has on its on it’s balance sheet to buy a competitor’s manufacturing plant for...
a) Your business uses cash it already has on its on it’s balance sheet to buy a competitor’s manufacturing plant for $50 million. How much does the “right hand” side (Capital Employed) of the balance sheet change by?
A Up by $50 million B It doesn’t change at all C Down by $50 million
b) Your business takes a long term loan to buy a competitor’s manufacturing plant for $50 million. How much does the “right hand” side (Capital Employed) of the balance sheet change by?
A Up by $50 million B It doesn’t change at all C Down by $50 million
Homework Answers
a) this will increase the capital of the firm and decrease the cash and increase the manufacturing unit by 50 million. The answer is "A" up by $50 million.
b) This will increase the lability and the cash of the firms the right has side will increase by $50 million. The answer is "A".
Add Answer to:
a) Your business uses cash it already has on its on it’s balance sheet to buy a competitor’s manufacturing plant for...
17. Your business takes a long term loan to buy a competitor's manufacturing plant for $50 million. How much does the "...
17. Your business takes a long term loan to buy a competitor's manufacturing plant for $50 million. How much does the "right hand" side (Capital Employed) of the balance sheet change by? A Up by $50 million B It doesn't change at all C Down by $50 million
QUESTION 2: Your bank has the following balance sheet (Unit: million). The required reserve ratio is...
QUESTION 2:
Your bank has the following balance sheet (Unit: million). The
required reserve ratio is 10%.
To fill in the following tables, instead of using a positive or
negative sign to indicate changes in the item, you need to write
down the value for items in each cell.
(A) Update the balance sheet if there is an unexpected deposit
outflow of $50 million.
(B) How much more reserves this bank needs to meet the
requirement?
(C) Write down all...
For your balance sheet, you want to calculate the asset side (left hand side) and then...
For your balance sheet, you want to calculate the asset side (left hand side) and then total liabilities from the right-hand side. Then place in the owner’s equity number that balances both sides. So, place in the owner’s equity number last after you have calculated the assets on the left-hand side and total liabilities on the right-hand side. The top left-hand side will include all Current Assets. Below that will include Net Fixed assets. Then total them up to come...
I have no idea about how to write a balance sheet at all. thank you! Take...
I have no idea about how to write a balance sheet at
all. thank you!
Take the following information on a company, and say what assets the company has and where the money came from to own those assets (its liabilities and equity) at the end of two years of operation (assume the principal repayment of debt has been made for year 2): The company has gross sales of $48 million per year, and the pattern of sales is even,...
First, restructure the balance sheet into a managerial balance sheet by re-arranging it to include the...
First, restructure the balance sheet into a managerial balance sheet by re-arranging it to include the working capital requirement. Then answer the questions that follow. Treat pre-paid expenses the same as you would accounts receive-able. As a check on your work. You should arrive at a capital employed (left hand side of the managerial balance sheet) of $1,090). The balance sheet of a firm is (in millions of $): Cash 75 Short term debt 50 A/R 65 A/P 35 Pre-paid...
The right side of the balance sheet shows the firm's liabilities and stockholders' equity. Which of...
The right side of the balance sheet shows the firm's liabilities and stockholders' equity. Which of the following best describes shareholders' equity? Equity is the sum of what the initial stockholders paid when they bought company shares and the earnings that the company has retained over the years. Equity is the difference between the paid-in capital and retained earnings. NOW Inc. released its annual results and financial statements. Grace is reading the summary in the business pages of today's paper....
The partnership of W, X, Y, and Z has the following balance sheet: Cash $ 51,000...
The partnership of W, X, Y, and Z has the following balance sheet: Cash $ 51,000 Liabilities $ 65,000 Other assets 306,000 W, capital (50% of profits and losses) 81,000 X, capital (30%) 99,000 Y, capital (10%) 61,000 Z, capital (10%) 51,000 Z is personally insolvent, and one of his creditors is considering suing the partnership for the $26,000 that is currently due. The creditor realizes that liquidation could result from this litigation and does not wish to force such...
“Third Bank” has the following balance sheet (in millions of dollars) with the risk weights in...
“Third Bank” has the following balance sheet (in millions of dollars) with the risk weights in parentheses. ASSET cash (0%) $20 interbank deposit with aa rated banks (20%) $25 Standard residential mortgages non- insured with LVR of 85 % (50%) $70 Business loans to BB rated borrowers (100%) $70 Total $185 Liabilities a equity Deposit $175 Subordinated debt (5 years) (Tier 2 capital) $3 Cumulative perference shares (Tier 1) $5 Common Equity (Tier 1) $ 2 Total $185 In addition,...
Question 2 (50 points in total) Question based on modified problems 4.3 from the reference text [Flynn (2009)] from...
Question 2 (50 points in total) Question based on modified problems 4.3 from the reference text [Flynn (2009)] from page 135 of the textbook: Create a balance sheet template and prepare a balance sheet for the company at the end of two years of operation (30 points): a. The company has gross sales of $48 million per year and the pattern of sales is even, i.e. there is no cyclical pattern to sales. b. Customers are large firms with a...
The balance sheet for the AB Partnership is a s follows, Assets $34,000 Property& Plant $366,000...
The balance sheet for the AB Partnership is a s follows, Assets $34,000 Property& Plant $366,000 Wages Payable $64,000 Loan due to A $24,000 Liabilities $140,000 A Capital $48,000 B Capital $124,000 The partners have set worth as follows A Assets $104000 $152,000 Labilites 594,000 $204,000 The net worth of each partner' does not include any amounts due to or from the partnership. Instructions: Assume assets are sold for $206,000 after incurring liquidation expense of $8,000. After liquidation of the...
17. Your business takes a long term loan to buy a competitor's manufacturing plant for $50 million. How much does the "right hand" side (Capital Employed) of the balance sheet change by? A Up by $50 million B It doesn't change at all C Down by $50 million
QUESTION 2:
Your bank has the following balance sheet (Unit: million). The
required reserve ratio is 10%.
To fill in the following tables, instead of using a positive or
negative sign to indicate changes in the item, you need to write
down the value for items in each cell.
(A) Update the balance sheet if there is an unexpected deposit
outflow of $50 million.
(B) How much more reserves this bank needs to meet the
requirement?
(C) Write down all...
I have no idea about how to write a balance sheet at
all. thank you!
Take the following information on a company, and say what assets the company has and where the money came from to own those assets (its liabilities and equity) at the end of two years of operation (assume the principal repayment of debt has been made for year 2): The company has gross sales of $48 million per year, and the pattern of sales is even,...
The right side of the balance sheet shows the firm's liabilities and stockholders' equity. Which of the following best describes shareholders' equity? Equity is the sum of what the initial stockholders paid when they bought company shares and the earnings that the company has retained over the years. Equity is the difference between the paid-in capital and retained earnings. NOW Inc. released its annual results and financial statements. Grace is reading the summary in the business pages of today's paper....
Question 2 (50 points in total) Question based on modified problems 4.3 from the reference text [Flynn (2009)] from page 135 of the textbook: Create a balance sheet template and prepare a balance sheet for the company at the end of two years of operation (30 points): a. The company has gross sales of $48 million per year and the pattern of sales is even, i.e. there is no cyclical pattern to sales. b. Customers are large firms with a...
The balance sheet for the AB Partnership is a s follows, Assets $34,000 Property& Plant $366,000 Wages Payable $64,000 Loan due to A $24,000 Liabilities $140,000 A Capital $48,000 B Capital $124,000 The partners have set worth as follows A Assets $104000 $152,000 Labilites 594,000 $204,000 The net worth of each partner' does not include any amounts due to or from the partnership. Instructions: Assume assets are sold for $206,000 after incurring liquidation expense of $8,000. After liquidation of the...
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