The different forms of export financing distribute risks differently between the exporter and the importer. Analyze the distribution of risk in the following export-financing instruments: a. Confirmed, revocable letter of credit b. Confirmed, irrevocable letter of credit c. Open account credit d. Time draft, D/A e. Cash with order f. Cash in advance g. Consignment h. Sight draft
Distribution The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...
A household freezer operates in a kitchen at 25oC. Heat must be transferred from the cold space at a rate of 2.5 kW to maintain its temperature at - 25oC. What is the smallest (power) motor required to operate the freezer.
Evaluate the effectiveness of coupons as a sales promotion tool. How would you respond to critics who argue that they are inefficient since less than 2 percent of coupons are redeemed?
Nevis Corporation manufactures and sells a single product. In preparing the budget for the first quarter, the company’s cost accountant has assembled the following information. The company uses the first-in, first-out method to report its inventory of finished goods. Instructions Compute the...
Winterborn Manufacturing Co. completed the following transactions during 2016:Jan. 16 Declared a cash dividend on the 4%, $100 par noncumulative preferred stock (950 shares outstanding). Declared a $0.40 per share dividend on the 95,000 shares of $4 par value common stock outstanding. The date of...
Hirpara Inc. has provided the following data for July: Raw materials, beginning balance $12,000 Work in process, beginning balance $32,000 Finished Goods, beginning balance $41,000 Transactions: 1. Raw materials purchases $64,000 2. Raw materials used in production (all direct materials) $69,000 3....
Reformulate the following balance sheet and income statement for a manufacturing concern. Amounts are in millions. The firm bears a 36 percent statutory taxrate.
Describe the different steps and documents involved in exporting motors from Kansas to Hong Kong using a confirmed letter of credit, with payment terms of 90 days sight. What alternatives are available to the exporter to finance this shipment?
The Nelson Sheetmetal Company has current assets of $2.5 million and current liabilities of $1.0 million. The firm is in need of additional inventory and has an opportunity to borrow money on a short-term note with which it can buy the needed material. However, a previous financing agreement...