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  • Current Financial Situation: Accounts Payable

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    Rafael Rangel de Castro
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    The company has $325,000 in cash, $520,000 in accounts receivable, and $310,000 in accounts payable. It has a $16,250,000 bank loan at 6% interest and a $500,000 line of credit available at 9% interest. The company collects receivables within 30 days, pays payables within 60 days, and makes 80% of sales on credit at a 25% income tax rate.

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    The company has $325,000 in cash, $520,000 in accounts receivable, and $310,000 in accounts payable. It has a $16,250,000 bank loan at 6% interest and a $500,000 line of credit available at 9% interest. The company collects receivables within 30 days, pays payables within 60 days, and makes 80% of sales on credit at a 25% income tax rate.

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    © All Rights Reserved
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    7 views1 page

    Current Financial Situation: Accounts Payable

    Uploaded by

    Rafael Rangel de Castro
    The company has $325,000 in cash, $520,000 in accounts receivable, and $310,000 in accounts payable. It has a $16,250,000 bank loan at 6% interest and a $500,000 line of credit available at 9% interest. The company collects receivables within 30 days, pays payables within 60 days, and makes 80% of sales on credit at a 25% income tax rate.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 1

    Current Financial Situation

    Cash in bank 325,000


    Accounts Payable 310,000
    Accounts Receivable 520,000
    FF&E replacement reserve fund 500,000
    Bank loan outstanding 16,250,000
    Line of credit available for operations 500,000

    Bank interest rate on cash on deposit 3%


    Interest rate on bank loan 6%
    Interest rate on line of credit in use 9%
    Accounts Receivable collected in 30 Days
    Accounts Payable paid in 60 Days
    Amount of sales made with credit and credit cards 80%
    Amount of sales made with cash 20%
    Income tax rate 25%

    Book value of property and equipment 49,000,000


    Book value of FF&E 9,000,000

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