Case Study On Current And Pass Liability Balance

The company has an agreement with a bank that allows the company to borrow the exact amount needed at the beginning of each month. The interest rate on these loans is 1% per month and for simplicity we will assume that interest is not compounded. At the end of the quarter, the company will pay the bank all of the accrued interest on the loan and as much of the loan as possible while still retaining at least $50,000 in cash.

For option with refinance, I completed similar calculations as in options 1 and 2. However, for the first 5 years the payment was as in option 1. Then, I calculated new payment for years 11-15 by using ending balance after 60 months as new loan amount; I used APR of 4.25% compounded monthly. Then, I found present values of tax savings. In this case, present time is after 60 month in house. When

Total Sales Dollars (for covering each incremental dollar of advertising) = $200,000 / $150,000 = $1.33

The case study selected for week three centers on a liability and assumption of risk case study. In this case study, Brent Thomas and George Banks are facing liability charges after Ricky Watts sustained a serious injury during hockey practice (Essex, 2016). In this situation, Thomas is the school principal, and Banks is the hockey coach as well as the gym teacher (Essex, 2016). Ricky obtained injuries after improperly blocking the puck (Essex, 2016). This case study was selected because it highlights a situation that will likely be faced by all future school leaders. Sports are popular among students, and there is inherent risk in each sporting event. A school is open to liability if they do not ensure that proper protocols are met.

Scenario 2 shows the practice having moderate growth and there is no decrease in the associate fee. Even though the growth rate is 8% and not 17.5%, the company can still repay the loan because the CATO is positive throughout the years. Miller might not be able to repay the loan that fast, like scenario 1, but would be able to repay it in 10 years.

The revenue is $600,600*1.2= $720,720. The variable cost changes as sales increases and fixed cost stays the same, the gross profit is $175,500. After tax, the net income is $100,557.

Profit: $686,670 ($225*$5,000= $1,125,000 (Revenue); $75*4,000=$300,000 + $50,000/4,000= $87.50 (Unit Cost); $87.50*4,000= $350,000 + $83,330= $433,330

a. How much would the payment be if rate of interest is 5% and you only financed the truck for 48 months?

8. Times interest earned = (Net Income + Interest) in Statement of Operations / Interest in

Compute the amount of gross profit to be recognized from the installment sale in 2006, 2007, 2008, 2009, and 2010 using point of delivery revenue recognition. Ignore interest charges.

Current funds allocated to advertising and sales promotion is 3% of net sales ($80,000,000) = $360,000

The fixed cost is assumed that Larry has discovered the other fixed cost incurred. The total investment is $800,000. The worst case scenario assumes that Larry got a total line of credit from the bank in the amount of $400,000 and invested $400,000 from other source. The Notes payable – short term and the long-term debt is (11.8 + 3.7) = 15.5 % from Table F in the handout. The Loan interest and payment per year is ($400,000 * 0.155)= $62,000. The Income data from Table F indicates that there is a 0.4% of all other expenses net out of the total sales which equals to $109,908 (5,700,666 gallons * $4.82 *0.4%) .

For payment of second year’s borrowed loan, this amount is payable through years 2 to 6.

iii. The cash amount to be paid for these leases in 2004 will be $44.

Normally your repayments will be payable on the first business day of each month and will be: