Debt Reduction- Advice On Credit Card Debt Reduction, Debt Reduction Services, And Debt Reduction Plans

Bryan Doherty asked:


Commercial savings account of $612,005 and a commercial checking account balance of $921,648 are held at First National Bank of Olathe.
Money market fund account held at Volonte Co. (a mutual fund organization) permits Weinstein to write checks on this balance, $5,321,924.
Travel advances of $180,000 for executive travel for the first quarter of next year (employee to reimburse through salary reduction).
A separate cash fund in the amount of $1,500,000 is restricted for the retirement of long-term debt.
Petty cash fund of $1,132.
An I.O.U. from Marianne Koch, a company customer, in the amount of $190,000.
A bank overdraft of $110,000 has occurred at one of the banks the company uses to deposit its cash receipts. At the present time, the company has no deposits at this bank.
The company has two certificates of deposit, each totaling $500,000. These CDs have a maturity of 120 days.
Weinstein has received a check that is dated January 12, 2011, in the amount of $125,000.
Weinstein has agreed to maintain a cash balance of $500,000 at all times at First National Bank of Olathe to ensure future credit availability.
Weinstein has purchased $2,100,000 of commercial paper of Sergio Leone Co. which is due in 60 days.
Currency and coin on hand amounted to $8,040.

(a)Compute the amount of cash and cash equivalents to be reported on Weinstein Co.’s balance sheet at December 31, 2010.

Frank Neptune

21 asked:


the principal balance.
A) True
B) False
2.
During the month, a company sells goods for a total of $106,000, which includes sales taxes of $6,000; therefore, the company should recognize $100,000 in Sales Revenues and $6,000 in Sales Tax Expense.
A) True
B) False
Multiple Choice
3.
Which of the following is not an advantage of issuing bonds instead of common stock?
A) Stockholder control is not affected.
B) Earnings per share on common stock may be lower.
C) Tax savings result.
D) Each of the above is an advantage.
4.
The following totals for the month of April were taken from the payroll register of Noll Company.
salaries 24000
FICA taxes withheld 1100
income taxes withheld 5000
medical insurance deductions 900
federal unemployment taxes 64
state unemployment taxes 432
The entry to record accrual of employer’s payroll taxes would include a
A) debit to Payroll Tax Expense for $496.
B) debit to Payroll Tax Expense for $1,596.
C) credit to FICA Taxes Payable for $2,200
D) credit to Payroll Tax Expense for $496.
5.
Wolford Company borrowed $750,000 from U.S. Bank on January 1, 2009 in order to expand its mining capabilities. The five-year note required annual payments of $195,327 and carried an annual interest rate of 9.5%. What is the amount of expense Wolford must recognize on its 2010 income statement?
A) $71,250
B) $59,463
C) $52,694
D) $46,555
6.
The following totals for the month of April were taken from the payroll register of Metz Company.
salaries 20000
FICA taxes withheld 1533
income taxes withheld 4400
medical insurance deductions 800
federal unemployment taxes 160
state unemployment taxes 1000
The entry to record the accrual of federal unemployment tax would include a
A) credit to Federal Unemployment Taxes Payable for $160.
B) credit to Federal Unemployment Taxes Expense for $160.
C) credit to Payroll Tax Expense for $160.
D) debit to Federal Unemployment Taxes Payable for $160.
7.
The interest charged on a $100,000 note payable, at the rate of 6%, on a 60-day note would be
A) $6,000.
B) $3,333.
C) $1,500.
D) $1,000.
8.
Unearned Rental Revenue is
A) a contra account to Rental Revenue.
B) a revenue account
C) reported as a current liability.
D) debited when rent is received in advance.
9.
When the straight-line method of amortization is used for a bond premium, the amount of interest expense for an interest period is calculated by
A) adding the amount of premium amortized for that period to the amount of cash paid for interest during the period.
B) subtracting the amount of premium amortized for that period from the amount of cash paid for interest during the period.
C) multiplying the face value of the bonds by the stated interest rate.
D) multiplying the face value of the bonds by the market interest rate.
10.
A current liability is a debt that can reasonably be expected to be paid
A) within one year, or the operating cycle, whichever is longer.
B) between 6 months and 18 months.
C) out of currently recognized revenues.
D) out of cash currently on hand.
11.
West County Bank agrees to lend Drake Builders Company $100,000 on January 1. Drake Builders Company signs a $100,000, 6%, 6-month note. The entry made by Drake Builders Company on January 1 to record the proceeds and issuance of the note is
A)interest expense 3000
cash 97000
Notes payable 100000
B)cash 100000
notes payable 100000
C)cash 100000
interest payable 3000
notes payable 103000
D) cash 100000
interest expense 3000
notes payable 100000
interest payable 3000
12.
From the standpoint of the issuing company, a disadvantage of using bonds as a means of long-term financing is that
A) bond interest is deductible for tax purposes.
B) interest must be paid on a periodic basis regardless of earnings.
C) income to stockholders may increase as a result of trading on the equity.
D) the bondholders do not have voting rights.

Brandon Louras

Michael N asked:


Would you enact a transaction fee $0.02 per share traded daily and $0.02 per phone call daily – fees to be remitted by trading houses and telephone companies. 2,000,000,000 shares traded daily and 3,500,000,000 phone calls made daily. 5,500,000,000 x $0.02 = $110,000,000 per day in transaction fees to reduce the debt and deficit. $40,105,000,000,000 in annual fees for debt/deficit reduction – if the debt/deficit is ever reduced, these fees are then applied to SS and Medicare.

Clair Sellek

Eddie O asked:


Last year Ann Arbor Corp had $300,000 of assets, $305,000 of sales, $20,000 of net income, and a debt-to-total-assets ratio of 37.5%. The new CFO believes a new computer program will enable it to reduce costs and thus raise net income to $33,000. Assets, sales, and the debt ratio would not be affected. By how much would the cost reduction improve the ROE?

5.34%
5.82%
6.59%
8.67%
6.93%

Lelah Meservey

Sage asked:


The Fed has announced that it is going to purchase $600 billion of Treasury debt in order to lower interest rates. How does this work? The Fed gets its money by drawing on a line of credit from Treasury. When there is a budget deficit (as now), Treasury gets its money by issuing debt. So, the Fed buys $1000 of Treasury debt, obtaining the money by borrowing from Treasury. Treasury gets the $1000 by issuing Treasury debt. This looks like a wash sale, with no reduction in Treasury debt on the market. Bernanke is not stupid. There must be some reason why buying Treasury debt reduces interest rates. Please explain.

Dianne

Joseph asked:


Hi, I see some old post out there but just wanted to see if anyone has heard any good or bad about this firm. My brother is using them now and so he says they have been living up to their agreement but he is looking to settle with them early because his monthly payment with them is too much for him and his wife to handle. I am looking for help them pay if off early but want to do my own research before I go forward with my own money. Thanks!

Lana Leming

tiiisssk911 asked:




Vincent Momeni

girlem asked:


LUCENT TECHNOLOGIES

The following is an excerpt from Lucent Technologies’ Management’s Discussion and Analysis of Financial Condition and Results
of Operations: Executive Summary. We design and deliver the systems, software, and services that drive next-generation communications networks. Backed by Bell Labs research and development, we use our strengths in mobility, optical, access, data and voice networking technologies, as well as services, to create new revenue-generating opportunities for our customers, while enabling them to quickly deploy and better manage their networks. Our customer base includes communications service providers,
governments and enterprises worldwide. We have three segments organized around the products and services we sell. The reportable segments are Integrated Network Solutions (“INS”), Mobility Solutions
(“Mobility”) and Lucent Worldwide Services (“Services”). INS provides a broad range of software and wireline equipment related
to voice networking (primarily consisting of switching products, which we sometimes refer to as convergence solutions, and voice
messaging products), data and network management (primarily consisting of access and related data networking equipment
and operating support software) and optical networking. Mobility provides software and wireless equipment to support radio access
and core networks. Services provides deployment, maintenance, professional and managed services in support of both our product
offerings as well as multi-vendor networks. Beginning in fiscal 2001, the global telecommunications market deteriorated, resulting from a decrease in the competitivelocal exchange carrier market and a significant reduction in capital spending by established service providers.This trend intensified during fiscal 2002 and continued into fiscal 2003. Reasons for the market deterioration included general economic slowdown, network overcapacity, customer bankruptcies,
network build-out delays and limited availability of capital. We believe that the market for telecommunications equipment has stabilized and is starting to grow in certain areas. The growing demands of enterprises and consumers for additional services tailored to their needs is creating the need for a new convergence of networks, technologies and applications.

LUCENT TECHNOLOGIES INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in Millions, Except per Share Amounts)
September 30, September 30,
2004 2003
Assets
Cash and cash equivalents $ 3,379 $ 3,821
Marketable securities 858 686
Receivables 1,359 1,511
Inventories 822 632
Other current assets 1,813 1,213
Total current assets 8,231 7,863
Marketable securities 636 —
Property, plant, and equipment, net 1,376 1,593
Prepaid pension costs 5,358 4,659
Goodwill, net 434 188
Other assets 928 1,608
Total assets $ 16,963 $ 15,911

Liabilities
Accounts payable $ 872 $ 1,072
Payroll and benefit-related liabilities 1,232 1,080
Debt maturing within one year 1 389
Other current liabilities 2,361 2,393
Total current liabilities 4,466 4,934
Postretirement/employment
benefit liabilities 4,881 4,669
Pension liabilities 1,874 2,494
Long-term debt 4,837 4,439
Liability to subsidiary trust issuing
preferred securities 1,152 1,152
Other liabilities 1,132 1,594
Total liabilities 18,342 19,282
Commitments and contingencies
8.00% redeemable convertible
preferred stock — 868
Shareowners’ Deficit
Preferred stock—par value $1.00 per
share; authorized shares:
250; issued and outstanding: none — —
Common stock—par value $.01 per
share;Authorized shares:10,000;
4,396 issued and 4,395 outstanding
shares as of September 30, 2004,
and 4,170 issued and 4,

Tula Godshall

Tee ! asked:


Here are the questions:
2. Evaluate the asset, debt, and equity structure of Lucent Technologies, as well as trends and changes found on the common-size balance sheet.
3. What concerns would investors and creditors have based on only this information?
4. What additional finanacial and non-financial information would investors and creditors need to make investing and lending decisions for Lucent Technologies?

The info:
Executive Summary We design and deliver the systems, software and services that drive next-generation communications networks. Backed by Bell Labs research and development, we use our strengths in mobility, optical, access, data and voice networking technologies, as well as services, to create new revenue-generating opportunities for our customers, while enabling them to quickly deploy and better manage their networks. Our customer base includes communications service providers, governments and enterprises worldwide. We have three segments organized around the products and services we sell. The reportable segments are Integrated Network Solutions (“INS”), Mobility Solutions (“Mobility”) and Lucent Worldwide Services (“Services”). INS provides a broad range of software and wireline equipment related to voice networking (primarily consisting of switching products, which we sometimes refer to as convergence solutions, and voice messaging products), data and network management (primarily consisting of access and related data networking equipment and operating support software) and optical networking. Mobility provides software and wireless equipment to support radio access and core networks. Services provides deployment, maintenance, professional and managed services in support of both our product offerings as well as multi-vendor networks. Beginning in fiscal 2001, the global telecommunications market deteriorated, resulting from a decrease in the competitive local exchange carrier market and a significant reduction in capital spending by established service providers.This trend intensified during fiscal 2002 and continued into fiscal 2003. Reasons for the market deterioration included general economic slowdown, network overcapacity, customer bankruptcies, network build-out delays and limited availability of capital. We believe that the market for telecommunications equipment has stabilized and is starting to grow in certain areas. The growing demands of enterprises and consumers for additional services tailored to their needs is creating the need for a new convergence of networks, technologies and applications. Required 1. Using the Consolidated Balance Sheets for Lucent Technologies for September 30, 2004 and 2003, prepare a common-size balance sheet. 2. Evaluate the asset, debt, and equity structure of Lucent Technologies, as well as trends and changes found on the common-size balance sheet. 3. What concerns would investors and creditors have based on only this information? 4. What additional financial and nonfinancial information would investors and creditors need to make investing and lending decisions for Lucent Technologies? LUCENT TECHNOLOGIES INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (in Millions, Except per Share Amounts) September 30, September 30, 2004 2003 Assets Cash and cash equivalents $ 3,379 $ 3,821 Marketable securities 858 686 Receivables 1,359 1,511 Inventories 822 632 Other current assets 1,813 1,213 Total current assets 8,231 7,863 Marketable securities 636 — Property, plant, and equipment, net 1,376 1,593 Prepaid pension costs 5,358 4,659 Goodwill and other acquired intangibles, net 434 188 Other assets 928 1,608 Total assets $ 16,963 $ 15,911 Liabilities Accounts payable $ 872 $ 1,072 Payroll and benefit-related liabilities 1,232 1,080 Debt maturing within one year 1 389 Other current liabilities 2,361 2,393 Total current liabilities 4,466 4,934 Postretirement and postemployment benefit liabilities 4,881 4,669 Pension liabilities 1,874 2,494 Long-term debt 4,837 4,439 Liability to subsidiary trust issuing preferred securities 1,152 1,152 Other liabilities 1,132 1,594 Total liabilities 18,342 19,282 Commitments and contingencies 8.00% redeemable convertible preferred stock — 868 Shareowners’ Deficit Preferred stock—par value $1.00 per share; authorized shares: 250; issued and outstanding: none — — Common stock—par value $.01 per share;Authorized shares: 10,000; 4,396 issued and 4,395 outstanding shares as of September 30, 2004,and 4,170 issued and 4,169 outstanding shares as of September 30, 2003 44 42 Additional paid-in capital 23,005 22,252 Accumulated deficit (20,793) (22,795) Accumulated other comprehensive loss (3,635) (3,738) Total shareowners’ deficit (1,379) (4,239) Total liabilities, redeemable convertible preferred stock and shareowners’ deficit $ 16,963 $ 15911

Chuck

johnnetta asked:


The following is an excerpt from Lucent
Technologies’ Management’s Discussion and
Analysis of Financial Condition and Results
of Operations:
Executive Summary
We design and deliver the systems, software
and services that drive next-generation communications
networks. Backed by Bell Labs
research and development, we use our
strengths in mobility, optical, access, data and
voice networking technologies, as well as
services, to create new revenue-generating
opportunities for our customers, while
enabling them to quickly deploy and better
manage their networks. Our customer base
includes communications service providers,
governments and enterprises worldwide.
We have three segments organized
around the products and services we sell.
The reportable segments are Integrated Network
Solutions (“INS”), Mobility Solutions
(“Mobility”) and Lucent Worldwide Services
(“Services”). INS provides a broad range
of software and wireline equipment related
to voice networking (primarily consisting
of switching products, which we sometimes
refer to as convergence solutions, and voice
messaging products), data and network
management (primarily consisting of access
and related data networking equipment
and operating support software) and optical
networking. Mobility provides software and
wireless equipment to support radio access
and core networks. Services provides deployment,
maintenance, professional and managed
services in support of both our product
offerings as well as multi-vendor networks.
Beginning in fiscal 2001, the global
telecommunications market deteriorated,
resulting from a decrease in the competitive
local exchange carrier market and a significant
reduction in capital spending by established
service providers.This trend intensified
during fiscal 2002 and continued into fiscal
2003. Reasons for the market deterioration
included general economic slowdown, network
overcapacity, customer bankruptcies,
network build-out delays and limited availability
of capital.
We believe that the market for telecommunications
equipment has stabilized
and is starting to grow in certain areas. The
growing demands of enterprises and consumers
for additional services tailored to
their needs is creating the need for a new
convergence of networks, technologies and
applications.

1. Using the Consolidated Balance
Sheets for Lucent Technologies for
September 30, 2004 and 2003, prepare
a common-size balance sheet.
2. Evaluate the asset, debt, and equity
structure of Lucent Technologies, as
well as trends and changes found on
the common-size balance sheet.
3. What concerns would investors and
creditors have based on only this
information?
4. What additional financial and nonfinancial
information would investors
and creditors need to make investing
and lending decisions for Lucent
Technologies?
compose a 500-750-word paper in
APA format that includes your answers to questions 2-4

LUCENT TECHNOLOGIES INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(in Millions, Except per Share Amounts)
September 30, September 30,
2004 2003
Assets
Cash and cash equivalents $ 3,379 $ 3,821
Marketable securities 858 686
Receivables 1,359 1,511
Inventories 822 632
Other current assets 1,813 1,213
Total current assets 8,231 7,863
Marketable securities 636 —
Property, plant, and equipment, net 1,376 1,593
Prepaid pension costs 5,358 4,659
Goodwill and other acquired intangibles, net 434 188
Other assets 928 1,608
Total assets $ 16,963 $ 15,911
Liabilities
Accounts payable $ 872 $ 1,072
Payroll and benefit-related liabilities 1,232 1,080
Debt maturing within one year 1 389
Other current liabilities 2,361 2,393
Total current liabilities 4,466 4,934
Postretirement and postemployment benefit liabilities 4,881 4,669
Pension liabilities 1,874 2,494
Long-term debt 4,837 4,439
Liability to subsidiary trust issuing preferred securities 1,152 1,152
Other liabilities 1,132 1,594
Total liabilities 18,342 19,282
Commitments and contingencies
8.00% redeemable convertible preferred stock — 868
Shareowners’ Deficit
Preferred stock—par value $1.00 per share; authorized shares:
250; issued and outstanding: none — —
Common stock—par value $.01 per share;Authorized shares:
10,000; 4,396 issued and 4,395 outstanding shares as of
September 30, 2004,and 4,170 issued and 4,169
outstanding shares as of September 30, 2003 44 42
Additional paid-in capital 23,005 22,252
Accumulated deficit (20,793) (22,795)
Accumulated other comprehensive loss (3,635) (3,738)
Total shareowners’ deficit (1,379) (4,239)
Total liabilities, redeemable convertible preferred stock
and shareowners’ deficit $ 16,963 $ 15,911
See notes to consolidated financial statements.

Elroy Guntrum