Card Corp. purchased bonds at a discount of $49,000. The bonds were classified as available for sale. Subsequently, Card sold these bonds at a premium of $12,000. During the period that Card held this investment, amortization of the discount amounted to $19,000. What amount should Card report as gain on the sale of bonds?

Answer:

Gain= $5000

Explanation:

Giving the following information:

On January 1, 2016,  commercial truck for $48,00

Straight-line depreciation method.

Useful life of eight years.

Residual value of $8,000.

On December 31, 2018, Jacob Inc. sold the truck for $30,000.

Annual depretiation= (purchase value-residual value)/useful years

Annual depretiation= (48000-8000)/8=5000

Accumulated depreciation= 5000*2 years= 10000

Book value at second year= purchase value-accumulated depreciation= 38000

Gain/Loss= Sell price- book value= 43000-38000= $5000

Answer:

(D) Earnings numbers are accurate

Explanation:

Under the Sarbanes–Oxley Act of 2002, the SEC requires CFOs to certify that the firm’s financial statements should represent true and accurate amounts. It does contain any false commitment which affects the overall shareholder decisions.  

Moreover, the top manager of the company checks the accuracy of the financial reports which contains important and valuable information about the company.  

So, all options are incorrect except D.

Answer:

inflation rate after 1 year is 5.00%

Explanation:

expected inflation  = 4.25%

risk-free rate (r) =  3.5%

Treasury bonds = 1-year yield plus 0.5%

to find out

what inflation rate is expected after Year 1

solution

we say that yield on 1st year treasury bond is here

r1 = r + inflation rate = 3.5 + 4.25 = 7.75 %

and in 3rd year bond bond value is

r3 = r1 + 0.5% = 7.75 + 0.5 = 8.25 %

and

r3 = r + inflation3

so  inflation3  = 8.25 - 3.5 = 4.75 %

so

for 1st year inflation is = 4.25 %

and for 2nd year inflation is = I

and for 3rd year inflation is = I

so mean of these

[tex]\frac{4.28 + I + I}{3} = 4.75[/tex]

so I = 5.00 %

so

inflation rate after 1 year is 5.00%

Answer:

The correct option is (d)

Explanation:

Real wages are nominal wages less inflation. Nominal wage is not adjusted for inflation. Everyone had expected an inflation of 3% per year while increase in wages per year is 5%. This implied that they will expect real wage of 2% (5% - 3%) per year.

However, it turned out that inflation was 5% per year. This means that real wages were actually 0% (5% - 5%). There was no increase in real wages at all. So, they received lower real wage (actually nil) as against expected real wage of 3% per year.

Answer: $24

Explanation:

Given that,

Two workers serve = 16 customers per hour

Three workers serve = 22 customers per hour

Each customer spends an average of $4 in the store.

Total revenue from Two workers = 16 × $4

                                                       = $64

Total revenue from Three workers = 22 × $4

                                                          = $88

Therefore, the marginal benefit of hiring the third worker would be:

=  Total revenue from Three workers - Total revenue from Two workers

= $88 - $64

= $24

Answer:

The company's TIE is 5

Which is above the requirement of the bank.

Explanation:

TIE = income before interest and taxes / interest expense

The first step, is calculate the interest expense:

debt outstanding x debt rate

interest expense: 800,000 x 10% = 80,000

(if there were more than one type of debt, then we should calculate all the interest expense and add them together)

Then we calculate the EBIT (earnings before interest and taxes)

3,200,000 sales

x 6% profit margin:

192,000 net income.

This is the income after taxes and interest

we need to discount this figures.

(EBIT - interest expense) x ( 1 - tax-rate) = net income

(EBIT - 80,000) x ( 1 - 40%) = 192,000

EBIT - 80,000 = 192,000/0.6

EBIT = 320,0000 + 80,000 = 400,000

Now we are able to calculate the TIE ratio:

400,000/80,000 = 5

Final answer:

Alumbat Corporation's current TIE ratio is 4. This is calculated by first determining the EBIT from the annual sales and net profit margin, and then dividing by the annual interest expenses.

Explanation:

Calculation of Alumbat's Current TIE Ratio

To calculate Alumbat Corporation's Times Interest Earned (TIE) ratio, we first need to determine its earnings before interest and taxes (EBIT). The net profit margin on sales is 6%, which gives us a net income (NI) of 6% of $3,200,000. We can calculate EBIT by dividing NI by (1 - tax rate), as EBIT * (1 - tax rate) = NI. Subsequently, we use the formula TIE ratio = EBIT / interest expenses to find out the TIE ratio.

The interest expenses for Alumbat are 10% of the $800,000 debt, which is $80,000 annually. With an annual sales figure of $3,200,000 and a net profit margin of 6%, Alumbat's net income is $192,000.

EBIT = $192,000 / (1 - 0.40) = $320,000

Therefore, Alumbat's current TIE ratio is calculated as follows:

TIE ratio = EBIT / Interest Expenses = $320,000 / $80,000 = 4

With a TIE ratio of 4, Alumbat Corporation meets its bank's requirement to maintain a TIE ratio of at least 4 times.

Answer:

It is better to cleaned and shipped to the firm's outlet center at a cost of $23,000 to be sold at $80,000

Explanation: In alternative A) the firm loss is $80,000 ($125,000-$45,000)

In alternative E) all $125,000 is lost

In alternative B, C and D) the loss is $68,000 ($125,000-$80,000+$23,000)

Relevant costs are those evitable, that are cause of a manager decision related to an specific business decision.  

The only cost that can be avoided in these example is the cost of $23,000 so the goods can be cleaned and shipped to the firm's outlet center

To determine the more desirable alternative, we compare costs and revenues for each option. Option B is more desirable with a relevant cost of $23,000. The correct option is B.

To determine which alternative is more desirable, we need to compare the costs and revenues associated with each option. Option A is to sell the inventory 'as is' for $45,000. Option B is to clean and ship the goods to the outlet center at a cost of $23,000 and sell them for $80,000.

For option A, the relevant cost is the cost of carrying the inventory, which is $125,000.

For option B, the relevant cost is the cost of cleaning and shipping, which is $23,000.

Comparing the relevant costs, option B is more desirable. The relevant cost for option B is $23,000. The correct option is B.

https://brainly.com/question/12958123

#SPJ11

Answer:

d. $2,591.85

Explanation:

To solve we can use the present value formula defined by

[tex]PV=\frac{FV}{(1+r)^t}[/tex]

where PV is present value, FV is future value, t is time and r is the interest rate , we can replace the values given in the question. Where 4000 is the future value, the time is t=6 years, and the interest rate is r=0.075, so we get

[tex]PV=\frac{4000}{(1+0.075)^6}=2,591.85[/tex]

The present value of $4,000 to be received in 6 years at a 7.5 percent interest rate is approximately $2,556.05, with the closest answer choice being option d, $2,591.85.

To calculate the present value of $4,000 to be received in 6 years at an interest rate of 7.5 percent, we apply the present value formula: Present Value = Future Value / (1 + r)^n, where 'r' is the interest rate and 'n' is the number of years. Plugging our numbers into the formula gives us Present Value = $4,000 / (1 + 0.075)^6.

Performing the calculation:

Present Value = $4,000 / (1.075)^6 = $4,000 / 1.5648 approximately.

Present Value = $2,556.05 approximately.

Although none of the provided options exactly match this result, the closest to this computed value is option d, $2,591.85.

Answer:

option (D) loss, $3,000

Explanation:

Given:

price of the truck = $48,000

estimated residual value = $8,000

Exchange price of the truck = $60,000

Trade allowance = $35,000

Since, straight line depreciation is given, thus,

Total depreciation = [tex]\frac{\textup{48,000−8,000}}{\textup{8}}[/tex]

or

Total depreciation = $5,000 per year

Therefore,

the book value after two years

= Price of truck - total depreciation in two years

or

= $48,000 − ($5,000 × 2 years)

= $38,000

Now,

a trade allowance received ( i.e $35,000 ) is less than the book value

therefore a loss is recorded

The amount of loss = (Book value - trade allowance received)

or

The amount of loss =  $38,000 - $35,000 = $3,000

Hence, correct answer is option (D) loss, $3,000

Answer:

C. $123,200 $28,800

Explanation:

Provided information, we have:

Existing capital = $140,000 + $40,000 = $180,000

Admission of Erin for 1/5th share = $38,000

Total capital as per Erin share = $38,000 [tex]\times[/tex] 5 = $190,000

But actual total capital = $180,000 + $38,000 = $218,000

Therefore, inventory written off = $218,000 - $190,000 = $28,000

Jacob = $28,000 [tex]\times[/tex] 3/5 = $16,800

Katy = $28,000 [tex]\times[/tex] 2/5 = $11,200

Therefore,

Jacob's balance = $140,000 - $16,800 = $123,200

Katy's Balance = $40,000 - $11,200 = $28,800

The manufacturing overhead of Carried Away Hot Air Balloons, Inc. is calculated by summing up all the indirect costs associated with manufacturing, which amounts to $18,360.

To calculate the manufacturing overhead of Carried Away Hot Air Balloons, Inc., we need to sum up all the indirect costs associated with the production, ignoring any expenses that don't apply directly to the manufacturing process. In this question, the components of manufacturing overhead are Indirect Materials Used ($5,700), Indirect Labor ($10,300), Factory Repair and Maintenance($860), and Manufacturing Equipment Depreciation ($1,500).

Adding these four expenses together, we get:

$5,700 + $10,300 + $860 + $1,500 = $18,360

Hence, Carried Away's manufacturing overhead is $18,360.

https://brainly.com/question/32717570

#SPJ12

Answer:

present value of the prize: 4,451,822 dollars

Explanation:

we will calcualte the present value of an annuity-due of 5 payment of 1,000,000 discount at 4%

[tex]C \times \frac{1-(1+r)^{-time} }{rate}(1+r) = PV\\[/tex]

C 1,000,000

time 5

rate 0.04

[tex]1000000 \times \frac{1-(1+0.04)^{-5} }{0.04}(1+0.04) = PV\\[/tex]

PV $4,451,822.3310

This will be the present value of the prize today

Answer: $900,000

Explanation:

Net fixed assets(2014) = $3 million

Net fixed assets(2015) = $3.7 million

Depreciation expense = $200,000

Net capital spending for 2015 = closing balance of 2015 - opening balance of assets + depreciation for the year

                                                  = $3,700,000 - $3,000,000 + $200,000

                                                  = $900,000

Therefore, the net capital spending for the year 2015 is $900,000.

Answer:

It is not necessary a decline in quantity of money for deflation to occur.

The quantity theory of money states that if money supply and velocity of circulation don't change economic growth (positive change in GDP) will result in declining price levels

Explanation:

The quantity of money theory states that

[tex]M\times V=P\times Y[/tex]

where M is the money supply, V is the velocity of circulation, P is the price level and Y is the GDP

We can put this equation in terms of percentage changes, which gives

[tex]\hat{M}+\hat{V}=\hat{P}+\hat{Y}[/tex]

where the [tex]\hat{M}[/tex] denotes the percentage change in the money supply, and similarly for the other variables.

Then for the percentage change in prices to be negative we have that

[tex]\hat{P}<0\hat{M}+\hat{V}-\hat{Y}[/tex]

since

[tex]\hat{P}= \hat{M}+\hat{V}-\hat{Y}[/tex]

[tex]\hat{M}+\hat{V}-\hat{Y}<0[/tex]

So if the there's no change in circulation velocity or gdp, then inflation can occur if there's a decline in money supply (percentual change in M is negative).

But it also could be other scenarios:

1.  money supply or output did not change and velocity of circulation decreased

2. money supply and velocity remained constant but GDP grew

Answer& Explanation:

cash 1,125,000 (45,000 x 25)

   common stock   225,000 (45,000  x 5)

  additional paid-in 900,000 (1,125,000 - 225,000)

cash 375,000 ( 5,000 x 75)

  common stock      25,000    (5,000 x 5)

  additional paid in   50,000 ( 75,000 - 25,000)

Treasury Stock    180,000 ( 7,500 x 24)

     Cash                               180,000

Cash                           26,000

    Treasury Stock                 24,000 ( 1,000 x 24)

     Asdditional paid in TS       2,000 ( 26,000 - 24,000)

Cash                         34,500  ( 1,500 x 23)

Additional Paid-in TS 1,500

   Treasury Stock                36,000 ( 1,500 x 24)

Dividends 100,000

    Dividneds payable   100,000

Dividends payable 100,000

    cash                                      100,000

Answer:

The amount of expenses reported for the period is $1,200

Explanation:

For computing the amount of expense, we have to apply the formula which is shown below:

Ending retained earning balance = Beginning retained earning balance + revenues earned - cash dividend paid - expenses incurred

$1,400 = $650 + $2,500 - $550 - expenses incurred

$1,400 = $2,600 - expenses incurred

So, the expenses incurred would be

= $2,600 - $1,400

= $1,200

Answer:

It will require an income for 80,556 before taxes

Explanation:

Fiorst, we will calculate the current tafter tax income:

72,500 x 20% = 14,500 tax expense

72,500 - 14,500 = 58,000 after-tax income

Now, we will calculate the pre-tax income to keep the same after-tax income with the new rate:

pretax income x ( 1 - new tax rate) = 58,000

pretax income x ( 1 - 0.28) = 58,000

pretax income = 58,000/0.72 = 80,555.56

At this level, Mr E will obtain the same after-tax income

Final answer:

To maintain the couple's disposable income after the tax rate change from 20% to 28%, Mrs. E must earn an additional $8,056 based on the calculation of their current after-tax income and the shortfall created by the increased tax rate.

Explanation:

To calculate how much income Mrs. E must earn to maintain the couple's after-tax disposable income after the tax rate increase from 20% to 28%, we must first determine their current after-tax income. With Mr. E's current salary of $72,500 and a tax rate of 20%, the after-tax income is calculated as follows:

Next, we calculate the new after-tax income with the increased tax rate of 28%:

Now, to maintain their original after-tax income of $58,000, we need to find out how much Mrs. E needs to earn:

Therefore, Mrs. E must earn an additional $8,056 to maintain the couple's after-tax disposable income at the current level, accounting for the tax rate increase to 28%.

Answer:

Instructions are listed below

Explanation:

Giving the following information:

Q=15 million

Q*=25 million

Unitary variable cost= $3

Fixed manufacturing overhead costs $3million per year

A) For Q:

Total cost= 3000000+15000000*3= $63000000

B) Average cost per unit=63000000/15000000=$4.2

C) Fixed cost per unit= 3000000/15000000= $0.2

D) Q*=25000000

Total cost= 30000000+25000000*3=$78000000

E) Fixed cost per unit= 3000000/25000000= $0.12

D) It decreases because the fixed costs are distributed by more units.

The current total product cost is $45 million, the current average product cost per unit is $3, the current fixed cost per unit is $0.20. The forecasted total product cost next year is $75 million, the forecasted average product cost next year is $3, and the forecasted fixed cost per unit is $0.12. The average product cost decreases as production increases due to the spreading of fixed costs over a larger number of units.

1. The current total product cost, including fixed and variable costs, can be calculated by multiplying the number of units (15 million) by the total cost per unit ($3). So the current total product cost is $45 million.

2. The current average product cost per unit can be calculated by dividing the current total product cost ($45 million) by the number of units (15 million). So the current average product cost per unit is $3.

3. The current fixed cost per unit is calculated by dividing the fixed manufacturing overhead costs ($3 million) by the number of units (15 million). So the current fixed cost per unit is $0.20.

4. The forecasted total product cost next year, including fixed and variable costs, can be calculated by multiplying the number of units (25 million) by the total cost per unit ($3). So the forecasted total product cost next year is $75 million.

5. The forecasted average product cost next year can be calculated by dividing the forecasted total product cost next year ($75 million) by the number of units (25 million). So the forecasted average product cost next year is $3.

6. The forecasted fixed cost per unit is calculated by dividing the fixed manufacturing overhead costs ($3 million) by the number of units (25 million). So the forecasted fixed cost per unit is $0.12.

7. The average product cost decreases as production increases because the fixed costs are spread over a larger number of units. This means that the fixed cost per unit decreases as more units are produced, resulting in a lower average product cost.

Answer: $8,600,000

Explanation:

Acquire Southern Company's assets and liabilities in cash = $20,000,000

Southern's balance sheet reported,

Assets = $75,000,000

Liabilities = $65,000,000

plant assets are overvalued by $1,400,000

Actual Value of Southern's Assets = Total Fair Value - Overvaluation

                                                         = $75,000,000 - $1,400,000

                                                         = $73,600,000

Goodwill = Actual Value of Southern's Assets - Value of Liabilities

               = $73,600,000 - $65,000,000

               = $8,600,000

Final answer:

Goodwill is calculated by subtracting the fair value of the net assets of Southern Company from the purchase price paid by Rand Corporation. With the plant assets overvalued by $1,400,000, the adjusted net assets are $8,600,000 and the resulting goodwill is $11,400,000.

Explanation:

The student is asking how to calculate the goodwill resulting from Rand Corporation's acquisition of Southern Company. To determine goodwill, we subtract the fair value of the identifiable net assets acquired from the purchase price. First, we need to adjust the assets and liabilities reported on Southern's balance sheet to reflect their fair value. Southern's plant assets were overvalued by $1,400,000; thus, we subtract this from the reported assets value of $75,000,000 to get $73,600,000. Next, calculate the net assets by subtracting liabilities from assets ($73,600,000 - $65,000,000 = $8,600,000). Finally, we subtract this net assets figure from the cash paid by Rand Corporation ($20,000,000 - $8,600,000 = $11,400,000), which is the amount of goodwill to be reported.

Answer: In the context of supply chain management "b. It can be enhanced by making a series of make-or-buy decisions." is TRUE of adaptability.

Explanation: Adaptability is basically how the company has to adapt the changes, to new technologies so as not to be left behind in addition to obtaining multiple financial and administrative benefits.

Answer:

Taking into consideration only the income, the increase in unit sales will not increase the income of Honda. It can impact in other ways, like a decrease in inventory.

Explanation:

Giving the following information:

Honda Motor Company is considering offering an $1800 rebate on its​ minivan

New price $30200

Old price $28400.

The marketing group estimates that this rebate will increase sales over the next year from 42000 to 53900 vehicles.

Honda's profit margin with the rebate is $5650 per vehicle.

Normal price:

Income= (5650+1800)*42000= $312,900,000

New price:

Income= 5650* 53900= $304,535,000

Taking into consideration only the income, the increase in unit sales will not increase the income of Honda. It can impact in other ways, like a decrease in inventory.

Answer: Economic climate

Explanation:  In simple words, the view of economists, businesses and investors on the economic conditions of a country is its economic climate. It constitutes factors such as job market, stock market and credit availability etc.

These factors are domestic and could not be controlled by any authority completely. The fluctuations in such factors exist in every economy.

These factors could affect any venture from foreign.  The needs of resources for such a venture like capital or customers etc is highly dependent on the constituents of economic climate.

Thus, the correct answer is economic climate.

Answer:

Balance for the Factory Overhead account: 19,000 credit

Explanation:

We will first, calculate the overhead rate based on the predetermination overhead rate:

[tex]\frac{Cost\: Of \:Manufacturing \:Overhead}{Cost \:Driver}= Overhead \:Rate[/tex]

The total manufacturing cost will be distributed over the cost driver. In this case, labor cost:

360,000/180,000 = 2 overhead rate

Then, we calculate the applied overhead 203,000 x 2 = 406,000

Now, the balance for factory overhead account:

Actual overhead: 387,000 debit

        payable, accumulated depreicaiton and other 387,000 credit

WIP 406,000 debit

Applied Overhead 406,000 credit

Balance:

406,000 - 387,000 = 19,000 credit

The after-tax cash for Company G and Company J, given the contract value of $85,000 and their respective tax rates, are $59,500 and $67,150. Even if Company G performs the service under the contract of J, the tax is accounted based on J's rate, thus the after-tax cash remains the same for both companies.

The after-tax cash that the two companies will get is computed by subtracting the taxes from the total contract value. Company G has a 30 percent marginal tax rate. If it is the party to the contract and provides the services to the client, the tax will be $85,000 * 0.3 = $25,500. Therefore, the after-tax cash for Company G will be $85,000 - $25,500 = $59,500.

Now, let's consider Company J. It has a 21 percent marginal tax rate. If it is the party to the contract and provides the services, the tax will be $85,000 * 0.21 = $17,850. Therefore, the after-tax cash for Company J will be $85,000 - $17,850 = $67,150.

If Company J is the party to the contract, but Company G actually provides the services, the tax will still be calculated based on Company J's marginal tax rate. Thus, the after-tax cash from the contract for these companies remains the same at $67,150.

https://brainly.com/question/34242673

#SPJ12

Answer:

The correct answer is C: 48000

Explanation:

The Expenditure Approach is a method of measuring GDP by calculating all spending throughout the economy including consumer consumption, investing, government spending, and net exports. This method calculates what a country produces, assuming that the finished goods and services of a country equals the amount spent in the country for that period.

The formula is:

GDP=C+I+G+/-NX

GDP: Gross Domestic Product

(C) consumer spending – this is the amount that all consumers spend on goods and services for personal use.

(I) investment – this is the amount that businesses or owners spend to invest in new equipment or expansions.

(G) government spending – this includes spending on new infrastructure like bridges and roads.

(NX) net exports – this includes spending on a country’s exports minus its spending on imports.

AddedGDP= 56000-8000

AddedGDP= 48000

Answer:

Total cost=   $8993

Explanation:

Total manufacturing cost is the aggregate amount of cost incurred by a business to produce goods in a reporting period.

Generally accepted accounting principles require that the cost of goods sold shall consist of:

the cost of direct materials

the cost of direct labor

the cost of manufacturing overhead

In this exercise:

direct materials= $2057

direct labor= 32hours*$21=$672

manufacturing overhead= 216hours*$29= $6264

Total cost= 2057 + 672 + 6264=  $8993

Answer:

A) FV= 6414.27

B) FV=2000*(1.09^15)= 7284.97

Explanation:

Giving the following information:

A) Present value=  $2,000

Compounded annually for 20 years at 6 percent.

n= 20

i=0.06

B) Present value= $2,000

Compounded annually for 15 years at 9 percent.

n=15

i= 0.09

To calculate the Final Value we need to use the following formula:

FV= Present value*(1+interest rate)^n

A) FV= 2000*(1.06^20)

FV= 6414.27

B) FV=2000*(1.09^15)= 7284.97

The price of bonds issued by Conner Enterprises will vary based on the market yield. A bond with a 10% coupon rate will be sold at a premium if the market yield is 8%, at par if the yield is 10%, and at a discount if the yield is 12%.

The student's question is about the pricing of bonds issued by Conner Enterprises at different yield rates. When the yield rate matches the coupon rate, the bond is sold at face value. However, if the market interest rates are lower than the coupon rate, the bonds will sell for a premium; conversely, if market rates are higher, the bonds will sell at a discount.

For a bond with a 10% coupon rate and a market yield of 10%, the price would be at par, meaning the issue price would equal the face value, or $120,000. If the bonds were priced to yield 8%, the price would be higher than $120,000 because the bond's fixed interest payments are more attractive compared to the market rate. Conversely, if the bonds were priced to yield 12%, the issue price would be less than $120,000, as the coupon rate is no longer as attractive as the new market rate.

Using the example of the water company bond, if interest rates rise, the bond will be sold for less than its face value due to the lower interest rate compared to the market rate. Similarly, if we calculate the price for a bond at an interest rate of 9% using the formula given, we can determine the actual price someone would be willing to pay for it.

Answer: Option (C) is correct.

Explanation:

Given that,

Partner S:

Salary allowance = $20,000

Interest on average capital balance = 10% of 60,000

                                                            = $6,000

Average capital balances for the current year = $60,000

Remainder = 30% of 50,000

                   = $15,000

Amount should be allocated = Salary allowance + Interest on average capital balance + Remainder

                                                = $20,000 + $6,000 + $15,000

                                                = $41,000

Partner R:

Salary allowance = $25,000

Interest on average capital balance = 10% of 50,000

                                                            = $5,000

Average capital balances for the current year = $50,000

Remainder = 30% of 50,000

                  = $15,000

Amount should be allocated = Salary allowance + Interest on average capital balance + Remainder

                                                = $25,000 + $5,000 + $15,000

                                                = $45,000

Partner T:

Salary allowance = $15,000

Interest on average capital balance = 10% of 40,000

                                                            = $4,000

Average capital balances for the current year = $40,000

Current year net income = $125,000

Remainder = 40% of 50,000

                  = $20,000

Amount should be allocated = Salary allowance + Interest on average capital balance + Remainder

                                                = $15,000 + $4,000 + $20,000

                                                = $39,000

Workings:

Salary allowed = $20,000 + $25,000 + $15,000

                         = $60,000

Interest on average capital balance = $6,000 + $5,000 + $4,000

                                                            = $15,000

Total = Salary allowed  + Interest on average capital balance

        = $60,000 + $15,000

        = $75,000

Remainder = Current year net income - Total

                  = $125,000 - $75,000

                  = $50,000

Answer:

Total CashFlow to creditors : ($50.000).

Explanation:

Total Cash flow to creditors it's = I - E + B, where I it's Interest, E it's Ending Long Term Debt and B it's Beginning Long Term Debt.

With this, it means we get money from creditors instead of a payment to them.  

Answer:

50000

Explanation;

The 2014 balance sheet of Sugarpova’s Tennis Shop, Inc., showed long-term debt of $2.5 million, and the 2015 balance sheet showed long-term debt of $2.65 million. The 2015 income statement showed an interest expense of $100,000. What was the firm’s cash flow to creditors during 2015?

Particulars                                                                   Amount$

Interest Paid(a)                                                          100,000

Less  

Net new borrowings  

Long Term debt at the end Of 2015                          2650000

Less:Long Term debts in the beginning                  2500000

Net new borrowings(b)                                           150000

Cash flow to creditors(a)-(b)                                     50000

cash flow to credits during 2015 is 50000