The following additional information is available at June 30, 2022: Store Supplies on hand at June 30, 2022 amounted to $355,000. Insurance of $211,500 was paid on April 1, 2022, for 9-months to December 2022 Rent was prepaid on March 1, 2022, for 7-months to September 2022. (1) (ii) (iv) (v) 3 (x) The furniture and fixtures have an estimated useful life of 10 years and is being depreciated on the straight-line method down to a residual value of $10,000. (vi) (vii) (viii) On June 30, 2022, $185,000 of the previously unearned sales revenue had been earned. The aging of the Accounts Receivable schedule at June 30, 2022 indicated that the Allowance for Bad Debts should be $140,000. After making all other adjustments, a physical count of inventory was done, which reveals that there was $1,380,500 worth of inventory on hand at June 30,2022 The motor truck was acquired on December 1, 2021, and is being depreciated over 5 years on the double-declining balance method of depreciation, down to a residue of $15,000 (xi) Salaries earned by employees not yet paid amounted to $188,000 at June 30, 2022. Accrued interest expense as of June 30, 2022, $105,000. Other data: The business is expected to make principal payments totalling $600,000 towards the loan during the fiscal year to June 30,2023

Ford Motor has a division that finances consumer purchases of autos. To estimate the beta of their division, who would be a comparable firm? Hertz (Auto Rental and Leasing) Bank of America (grants auto loans, mortgages, credit cards) General Motors (another auto manufacturer) Ally Financial (auto financing company)

Assume you serve on the board of a local golf and country club. In preparation for renegotiating the club’s bank loans, the president indicates that the club needs to increase its operating cash flows before the end of the current year. The club’s treasurer reassures the president and other board members that he knows a couple of ways to boost the club’s operating cash flows. First, he says, the club can sell some of its accounts receivable to a collections company that is willing to pay the club $97,000 up front for the right to collect $1 00,000 of the overdue accounts. That will immediately boost operating cash flows. Second, he indicates that the club paid about $200,000 last month to relocate the 18th fairway and green closer to the clubhouse. The treasurer indicates that although these costs have been reported as expenses in the club’s own monthly financial statements, he feels an argument can be made for reporting them as part of land and land improvements (a long-lived asset)…

BnB Caribbean Inc. (BnB) is a leading construction company founded in 2001 and is based in Jamaica. Thecompany has within recent years been experiencing increases in revenues from its construction relatedservices such as design, build, expansion and remodeling, and emergency services. It’s main line of businessis from the construction of roads and commercial buildings within Jamaica and to a lesser extent a few otherCaribbean countries. Since the growth of the tourism sector in the Caribbean, BnB Caribbean has becomeconcerned about the number of other construction companies which have entered the market to providesimilar services around the Caribbean region. Business overseas contributes to 40% of the company’srevenues, while the other 60% comes mainly from works done in the domestic market.The COVID-19 pandemic has caused a slowdown in overall operations leading to prolonged delays in deliveryof raw materials from abroad. The CEO of the company is optimistic that there will be a…

You are a Corporate Credit Analyst for your bank. A new corporate customer in the manufacturing sector approached your bank for a large credit facility in the sum of $20 million for production equipment and warehousing. The customer submitted the following financials to you.    The cash position increased from $6.7 million in 2019 to $16 million in 2021. Does this signal a strengthening of the liquidity position of the firm? Explain.

Friendly Freddie’s is an independently owned major appliance and electronics discount chain with seven stores located in a Midwestern metropolitan area. Rapid expansion has created the need for careful planning of cash requirements to ensure that the chain is able to replenish stock adequately and meet payment schedules to creditors. Fred Ferguson, founder of the chain, has established a banking relationship that provides a $200,000 line of credit to Friendly Freddie’s. The bankrequires that a minimum balance of $8,200 be kept in the chain’s checking account at the end of each month. When the balance goes below $8,200, the bank automatically extends the line ofcredit in multiples of $1,000 so that the checking account balance is at least $8,200 at month-end.Friendly Freddie’s attempts to borrow as little as possible and repays the loans quickly in multiples of $1,000 plus 2 percent monthly interest on the entire loan balance. Interest payments and any principal payments are paid at the…

TechSpecialist (Pty) Ltd (hereafter referred to as “TechSpecialist”) is a small to medium-sized enterprise involved in the purchase and sale of IT hardware and accessories. TechSpecialist is located around Thohoyandou industrial area. The Thulamela Municipality is their largest client, which they have obtained through the annual tender process. The entity has experienced cash flow difficulties due to the Covid 19 pandemic. TechSpecialist has enjoyed tremendous support from the Thulamela Municipality; however, as is customary with government institutions, the Thulamela Municipality have a 60- day payment policy. In other words, the Thulamela Municipality has up to 60 days to pay an invoice before they can allow their suppliers to charge them interest. The Thulamela Municipality has on certain occasions paid supplier invoices within 20 days but on other occasions, they have paid the invoices on the 60th day. On 28 July 2021, TechSpecialist delivered IT equipment to the Thulamela…

33. subject:- Accounting

Friendly Freddie’s is an independently owned major appliance and electronics discount chain with seven stores located in a Midwestern metropolitan area. Rapid expansion has created the need for careful planning of cash requirements to ensure that the chain is able to replenish stock adequately and meet payment schedules to creditors. Fred Ferguson, founder of the chain, has established a banking relationship that provides a $200,000 line of credit to Friendly Freddie’s. The bank requires that a minimum balance of $8,200 be kept in the chain’s checking account at the end of each month. When the balance goes below $8,200, the bank automatically extends the line of credit in multiples of $1,000 so that the checking account balance is at least $8,200 at month-end. Friendly Freddie’s attempts to borrow as little as possible and repays the loans quickly in multiples of $1,000 plus 2 percent monthly interest on the entire loan balance. Interest payments and any principal payments are paid at…

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