Accounting Equation: (Assets less Liabilities) Net assets = Equity

In this question , Total debts (Loans , bank overdrafts , creditors etc.)= Liabilities.

Liabilities = half of assets , ie 50% assets . apply these amounts to above Accounting equation to calculate Total debt to total equity.

I’m struggling to find information on Q5(i) re Accounting Equation. Could you please point me in the right direction of where to look?

Thank You!

Average accounts receivable = (Opening AR Balance + Closing AR balance)/2

2017,2018 ,2019 AR balances are available for you to calculate average AR balances for both years, Note that one year closing balance will become the opening balance of following year.

I am able to calculate the first year (2018) as we are given the opening balance from the previous year in the additional text below to add to the current year.

In terms of calculating 2019 – do I add the total from 2018 ($7,300) instead to the new total from 2019?

Many thanks,

Tammy

Self-test exercise 2 has 12%Debentures: $35,000

I’ve calculated cost correctly to 5.6%, but solution has Market value of debentures as $38,609. Can someone please tell me how to calculate MV of debentures? I.e. How it got from 35,000 to 38,609?

Thank you for your assistance 🙂

I could not quiet get your 1st question. Do you want to find the amount begining of the period, it sound like looking for present value, any particular exercise that you are after so I can provide and specific answer.

Loan “payout”  the quickest calculation is future value calculation. Example on page 89 (6th edition ) $5000 loan. (b) How much outstanding after 3rd installment is paid?

Rate = 12% , Nper = 3 , PMT = -1387/05 , PV = 5,000 , calculate future value , answer will be -2344.17

Hoe this helps.

Likewise I can’t find “AMRT” & “ENT” so I can calculate principle and interest paid at select periods during a loan. I can do this in an excel table showing every payment, but I can’t work out a quick calculation.

Thank You

The “rate” formula suggestion in excel was great. I have struggled for a week trying to work out the calcs in excel spreadsheets, sometimes with success compared to the answers, mostly without. Now I have found a way to move forward.

Thank you so much

Jo

Is that EL738 (not 238) ?We don’t have resources available for the calculator. Sorry! If you have the manual it’s the best resource , google is the other option.

Ensure you have clear previous calculations prior to attempt a new calculation.

Try:

3 N, 110.31 PV ,12 (Plus/minus) key from bottom row of the key pad to make it negative 12 , PMT, 100 Same key to make it negative , FV , and COMP , finish with I/Y key. You will find the correct number.

Though the text book heavily invested on the calculator I personally prefer excel financial formulas, “RATE” is the formula to use.

Hope this helps.