Homework Answers
Profit for the buyer = 
Notional
amount * (1- recovery rate)
- annual premiums
paid to the seller till default
= $100,000*
( 1- 75%) - 4($100,000 * 0.65%)
= $ 25000 - 4* $650
=$25000 - $2600
=$22400
IF the buyer had not taken the CDS contract, he/she would have suffered a loss of 25% ie $25000 as 75% of the amount has been recovered but due to cds contract the buyer reduced the loss by $22400 by incurring an actual loss of the premium paid ie $2600.
Loss for the seller- Amount paid to the buyer - premiums earned
=$ 25000 - $ 2600
= $ 22400.
Add Answer to:
Question 4 (3 marks): Using the information below, calculate the total profit/loss of the CDS contract....
Question 3: Unicon Labels needs to expand its facilities. To do so, the machine costing $200,000....
Question 3: Unicon Labels needs to expand its facilities. To do so, the machine costing $200,000. The machine can be leased on lease and purchase plans are as follows:- s. 1o do so, the company must acquire a ne machine can be leased or purchased. The terms of the Lease: The leasing arrangement requires beginning arrangement requires beginning-of-year payments of $65,000 over 4 years. All other costs will be paid by the lessor. Lesse costs will be paid by the...
Question 4 (24 marks) Presented below is information related to the operations of Myers Corporation December...
Question 4 (24 marks) Presented below is information related to the operations of Myers Corporation December 20100Sals Cash Accounts receivable Inventory Prepaid expenses Land Building Accumulated depreciation- buildingX Equipment Accumulated depreciation equipment S 65,000 40,000 Sales 2010 55,000 48,000 Cost of goods sold 37,000 22,000 Gross p 17,000 20,000 Depreciation ex 36,000 20,000 Other Operating expenses $400,000 190,000 210,000 15,000 141.000 100,000 100,000 Income from operations 54,000 oss on equipment sale (17,000) (8,000) In incoie taxes 51,000 58,000 80,000 Income...
Calculate 1. Return on assets, 2. profit margin, 3. working capital, 4. current ratio, 5. current...
Calculate 1. Return on assets, 2. profit margin, 3. working
capital, 4. current ratio, 5. current debt cash coverage, 6, debt
to total assets ratio, 7. cash debt coverage.
Financial statements INCOME STATEMENT For the year ended 30 June 2019 Consolidated RESTATED 2019 2018 $m $m Note 1 27,920 26,763 2 (16,344) (4,290) Continuing operations Revenue Expenses Raw materials and inventory Employee benefits expense Freight and other related expenses Occupancy-related expenses Depreciation and amortisation Impairment expenses Other expenses Total expenses...
QUESTION 4 (20 Marks) Your friend has his own business, but was in a serious motor accident prior to finalising the fin...
QUESTION 4 (20 Marks) Your friend has his own business, but was in a serious motor accident prior to finalising the financial statements for the year ended 28 February 2019. His wife asked you to please assist in preparing the cash flow statement for 2019. The following extracts from the annual reports for 2019 were provided: Income statement Revenue (sales) Cost of sales Gross profit Depreciation Loss on sale of non-current asset Interest paid Other operating expenses Profit before taxation...
why does the issue of share is 45000? thanks Question 4. (Total 20 marks) Condensed financial...
why does the issue of share is 45000? thanks
Question 4. (Total 20 marks) Condensed financial data of Barron Ltd appear below: BARRON LTD Comparative Statement of financial positions 31 December 2017 2016 Assets Cash Accounts receivable $ 72,000 85,000 120,000 $35,000 53,000 132,000 25,000 Inventories Prepaid expenses 19,000 Investments 75,000 Plant assets 90,000 310,000 (65.000) $631,000 Accumulated depreciation 250,000 (60,000) $510,000 Total Liabilities and Equity Accounts payable $ 93,000 29,000 Accrued expenses payable Notes payable 130,000 $75,000 24,000 160,000...
SECTION A (40 marks): Answer ALL Questions in this section. QUESTION ONE a) Aseda Ltd incurred...
SECTION A (40 marks): Answer ALL Questions in this section. QUESTION ONE a) Aseda Ltd incurred the following cost in its manufacturing operations GH¢ Cost of material purchase 20,000 Import duties 400 Trade discount @10% of purchase cost Cash discount 500 Irrecoverable taxes 1,000 Salary of factory plant operator 2,500 Direct labour 5,000 Salary of factory supervisor 4,000 Cost of expected production losses 800 Administrative overhead (Note) 16,000 Cost of storage of raw material for further processing 2,000 Marketing cost...
Requirements; company: Bahrain Islamic Bank Compute for the company’s Free Cash flow (3 marks for correct...
Requirements;
company: Bahrain Islamic Bank
Compute for the company’s Free Cash flow (3 marks for correct
process 2 marks for the correct answer)
Provide the interpretation of the computed free cash flow. (5
marks)
Compute for the following Financial Ratio; (for every ratio, 2
marks for correct process 1 mark for the correct answer)
Current Ratio
Quick Ratio
Average Collection Period
Debt Ratio
Net Profit Margin
Earnings per share
Return on Total Asset
Return on Equity
Price Earnings Ratio
Book...
1. 2. 3. 4. 5. Use this information for Kellman Company to answer the question that...
1.
2.
3.
4.
5.
Use this information for Kellman Company to answer the question that follow. The balance sheets at the end of each of the first two years of operations indicate the following: Kellman Company Total current assets Total investments Total property, plant, and equipment Total current liabilities Total long-term liabilities Preferred 9% stock, $100 par Common stock, $10 par Paid in capital in excess of par-Common stock Retained earnings Year 2 $600,000 60,000 900,000 125,000 350,000 100,000...
The founder of Frenza asks us to assist her in accounting and analysis of the corporation’s...
The founder of Frenza asks us to assist her in accounting and
analysis of the corporation’s bonds, which have an annual contract
rate of 8%. She wants to know the business and accounting
implications of further debt issuances as she looks for ways to
finance the growth of Frenza. The following Tableau Dashboard is
provided to help us address her questions and provide
recommendations for her business decisions.
Frenza Bond Amortization (Carrying Value (Green)) (Unamortized
Discount (red))
Frenza: January 1,...
3. Using information in Note 8, compare the amount recorded for Wendy’s investment in TimWen at...
3. Using information in Note 8, compare the amount recorded for
Wendy’s investment in TimWen at December 30, 2012 with Wendy’s 50%
share of TimeWen’s equity at December 30, 2012. What accounts for
the difference between these two amounts? Show calculations to
reconcile the two figures.
4. Consider the information disclosed in Note 8 regarding
Wendy’s investment in the TimWen Joint Venture.
a. How did Wendy’s equity method investment in TimWen affect
their earnings before taxes in 2012 and 2011?...
Question 3: Unicon Labels needs to expand its facilities. To do so, the machine costing $200,000. The machine can be leased on lease and purchase plans are as follows:- s. 1o do so, the company must acquire a ne machine can be leased or purchased. The terms of the Lease: The leasing arrangement requires beginning arrangement requires beginning-of-year payments of $65,000 over 4 years. All other costs will be paid by the lessor. Lesse costs will be paid by the...
Question 4 (24 marks) Presented below is information related to the operations of Myers Corporation December 20100Sals Cash Accounts receivable Inventory Prepaid expenses Land Building Accumulated depreciation- buildingX Equipment Accumulated depreciation equipment S 65,000 40,000 Sales 2010 55,000 48,000 Cost of goods sold 37,000 22,000 Gross p 17,000 20,000 Depreciation ex 36,000 20,000 Other Operating expenses $400,000 190,000 210,000 15,000 141.000 100,000 100,000 Income from operations 54,000 oss on equipment sale (17,000) (8,000) In incoie taxes 51,000 58,000 80,000 Income...
Calculate 1. Return on assets, 2. profit margin, 3. working
capital, 4. current ratio, 5. current debt cash coverage, 6, debt
to total assets ratio, 7. cash debt coverage.
Financial statements INCOME STATEMENT For the year ended 30 June 2019 Consolidated RESTATED 2019 2018 $m $m Note 1 27,920 26,763 2 (16,344) (4,290) Continuing operations Revenue Expenses Raw materials and inventory Employee benefits expense Freight and other related expenses Occupancy-related expenses Depreciation and amortisation Impairment expenses Other expenses Total expenses...
QUESTION 4 (20 Marks) Your friend has his own business, but was in a serious motor accident prior to finalising the financial statements for the year ended 28 February 2019. His wife asked you to please assist in preparing the cash flow statement for 2019. The following extracts from the annual reports for 2019 were provided: Income statement Revenue (sales) Cost of sales Gross profit Depreciation Loss on sale of non-current asset Interest paid Other operating expenses Profit before taxation...
why does the issue of share is 45000? thanks
Question 4. (Total 20 marks) Condensed financial data of Barron Ltd appear below: BARRON LTD Comparative Statement of financial positions 31 December 2017 2016 Assets Cash Accounts receivable $ 72,000 85,000 120,000 $35,000 53,000 132,000 25,000 Inventories Prepaid expenses 19,000 Investments 75,000 Plant assets 90,000 310,000 (65.000) $631,000 Accumulated depreciation 250,000 (60,000) $510,000 Total Liabilities and Equity Accounts payable $ 93,000 29,000 Accrued expenses payable Notes payable 130,000 $75,000 24,000 160,000...
SECTION A (40 marks): Answer ALL Questions in this section. QUESTION ONE a) Aseda Ltd incurred the following cost in its manufacturing operations GH¢ Cost of material purchase 20,000 Import duties 400 Trade discount @10% of purchase cost Cash discount 500 Irrecoverable taxes 1,000 Salary of factory plant operator 2,500 Direct labour 5,000 Salary of factory supervisor 4,000 Cost of expected production losses 800 Administrative overhead (Note) 16,000 Cost of storage of raw material for further processing 2,000 Marketing cost...
Requirements;
company: Bahrain Islamic Bank
Compute for the company’s Free Cash flow (3 marks for correct
process 2 marks for the correct answer)
Provide the interpretation of the computed free cash flow. (5
marks)
Compute for the following Financial Ratio; (for every ratio, 2
marks for correct process 1 mark for the correct answer)
Current Ratio
Quick Ratio
Average Collection Period
Debt Ratio
Net Profit Margin
Earnings per share
Return on Total Asset
Return on Equity
Price Earnings Ratio
Book...
1.
2.
3.
4.
5.
Use this information for Kellman Company to answer the question that follow. The balance sheets at the end of each of the first two years of operations indicate the following: Kellman Company Total current assets Total investments Total property, plant, and equipment Total current liabilities Total long-term liabilities Preferred 9% stock, $100 par Common stock, $10 par Paid in capital in excess of par-Common stock Retained earnings Year 2 $600,000 60,000 900,000 125,000 350,000 100,000...
The founder of Frenza asks us to assist her in accounting and
analysis of the corporation’s bonds, which have an annual contract
rate of 8%. She wants to know the business and accounting
implications of further debt issuances as she looks for ways to
finance the growth of Frenza. The following Tableau Dashboard is
provided to help us address her questions and provide
recommendations for her business decisions.
Frenza Bond Amortization (Carrying Value (Green)) (Unamortized
Discount (red))
Frenza: January 1,...
3. Using information in Note 8, compare the amount recorded for
Wendy’s investment in TimWen at December 30, 2012 with Wendy’s 50%
share of TimeWen’s equity at December 30, 2012. What accounts for
the difference between these two amounts? Show calculations to
reconcile the two figures.
4. Consider the information disclosed in Note 8 regarding
Wendy’s investment in the TimWen Joint Venture.
a. How did Wendy’s equity method investment in TimWen affect
their earnings before taxes in 2012 and 2011?...
Most questions answered within 3 hours.
-
Where is the error in this code sequence?
String s1 = "Hello";
String s2 = "ello";...
asked 10 months ago -
Financial data for Joel de Paris, Inc., for last year
follow:
Joel de Paris, Inc.
Balance...
asked 10 months ago -
Consider this reaction:
Al2(SO4)3 (aq)+ BaCl3
(aq) Al2Cl6 (aq)- +
3BaSO4(s) . What is the...
asked 10 months ago -
Suppose that Savneet is considering increasing her
recent random sample from 20 car rentals to 40...
asked 10 months ago -
Trucks arrive at an unloading terminal at an average rate of 120
per hour.
Trucks arrive...
asked 10 months ago -
Why are methanol and ethanol completely soluble in water while
octanol is not very little soluble....
asked 10 months ago -
A facilities manager at a university reads in a research report
that the mean amount of...
asked 10 months ago -
When the CuSO4 is rehydrated by adding water to the anhydrous
compound, is this an endothermic...
asked 10 months ago -
A ray of sunlight is passing from diamond into crown glass; the
angle of incidence is...
asked 10 months ago -
A block of mass 0.249 kg is placed on top of a light, vertical
spring of...
asked 10 months ago -
how do the kidneys compensate in the presences of acidosis
a) trigger hyperventilate
b) reserve acid...
asked 10 months ago -
Question 501 pts
The rental rate of capital to the firm increases. Which of the
following...
asked 10 months ago