Accounting Problem

Benjamin O'Henry has owned and operated O'Henry's Data Services since its beginning ten years ago. From all appearances, the business has prospered. In the past few years, you have become friends with O'Henry and his wife. Recently, O'Henry mentioned that he has lost his zest for the business and would consider selling it for the right price. You are interested in buying this business, and you obtain its most recent monthly unadjusted trial balance which follows: O'Henry's Data Services Unadjusted Trial Balance November 30, 20XX Cash……………………………… $9,700 Accounts receivable……………………… 7,900 Prepaid expenses………… 2,600 Furniture, fixtures, & equipment 151,300 Accumulated depre... click for more

Accounting

Les Fleurs, a boutique in Paris, France, had the following accounts in its accounting records at December 31, 20X2 (amounts in Euros, denoted as "E") Purchases………………... E250,000 Freight In……………… E8,000 Sales discounts…………. 4,000 Purchase returns…….. 7,000 Inventory Sales…………………. 400,000 December 31, 20X1….. 20,000 Purchase discounts…. 3,000 December 31, 20X2….. 30,000 Sales returns…………. 8,000 Compute the following for Les Fleurs during 20X2: (Do not convert the figures to US dollars.) Net sales revenue Cost of goods sold Gross profit Prepare an Income Statement, Owner's Equity Statement, and Balance Sheet.

Financial Accounting

O'Meara, Inc plans to issue $6 million of perpetual bonds. The face value of each bond is $1000. The semi-annual coupon on the bonds is 4.5%. Market interest rate on one-year bonds are 8%. With equal probability, the long term market interest rate will be either 12% or 6% next year. Assume investors are risk-neutral. A. If the O'Meara bonds are noncallable, what is the price of the bonds? B. If the bonds are callable one year from today at $1250, will their price be greater than or less than the price you computed in (a) ? Why?

Financial accounting

A corporation has contracted to provide lease financing for a machine to automate an assembly line. Annual lease payments will start at the beginning of each year. The purchase price of this machine is $250,000.00, and it will leased for five years. They will utilize straight line depriciation of $50,000.00 per year with a zero book salvage value. However, salvage value is estimated to actually be $50,000.00 at the end of 5 years. A 3% quarterly after tax rate of return is required. These payments are considered annuity due at the beginning of each year. A marginal tax rate of 35% is used. Calculate the annual lease payments. These payments are to be considered at the begining of eac... click for more

Uniqueness

Show that if Qx=y, where Q= I- ruu^T (r can be denoted as gamma) , then u must be a multiple of x-y. In other words, prove the uniqueness of reflector Q.