Need help determining the effect on assets (1) and the effect on total stockholders equity (3). I have attached both my problems and a very similar problem from CH for reference. Thank you !
question 'I 0 out of 3.334 points (:3. USE THE FOLLOWING INFDRIIIITIDN TD IHSW'EI THE NEXT [3} QUESTIONS: I . a Nni Computation: Educated. with mjmm ofaocounts receivable with Hamming. The. agreement mcl all three conditions to In: considered an airtight sale. Husk]: advanced 92% ofthe. ammmt fanloircd and retained the. remainder to Dom a 3% nance fee. and 5% lo cover any 531:: mtunulnllowanwddiswmls. The roomlrsc obligation: is estimated to be 2.4% of mulls factored. Determine the effect nfthil transaction on Hini'l nancial position: (Us: I for increased; D fordameeaed: orNE forNu Effect. Ether: is m: Effect, stated: dollar amount. Ludik. Ihe letter rst, Ihen the number. Do not spear: between the Inter and number. Do not use comes. Forumpla. 1'ny answeris 'Tewaasad by \"Wheeler m). ASSETS LMmITIES EQUITY 'I. Determine the effect on Assets: 5 Blank_'|] Selected Answe r: DEBUG Response Remember, the Due from Factor [DFFJ is an asset. Therefore. there are Mo assets being received when the sale takes place [Cash + DFH. This is offset Feedback: by the MR being removed from the balance sheet as these assets have nowI been sold. The net effect is the increaserdecrease to total assets. Question 2 3,333 out of3.333 points \"'7'. {1a Using the information in Question #1 above. determine the effect on Total Liabilitit: $[Ellank_2] Selected Answe r: "4-400 Question 3 u out M3333 points #51. Using the information in #1 above. determine the effect on Total Stockholder's Equity: $[Etlank_3] . 9 Selected Answe r: D3740!) Response Feedback: The effect on Net Income [and therefore the effect on equity). is a result of recording the Loss The "Loss" consists ofthe [ Fee + FLOJ GA, {in} 55'1\"\" Lil-H $1.1; (5:243!!! +5.3 335*an Ritwi-Er Mr (53'- -5 25 am _ R Eng-3m {ELESTIDN S mihhf' (LIT-It] u\"): fd [FEE THE FLLWENG lFHTl- 11'] ANWER THE NEXT ("31 Wl'l: Mini Cmpmu'inn facmli. with mun, Svl'l} ufncmnu mink}: with Hugh]: Financing. Th: will metall hum-minim: lu bu unmidcmd an Ullll'ill \"In. Huskl'e adv-alum Eli's-i inll: mum amed and 1113de lb: mnujmiur ILI norm-13% nmc 5:: {In he ruminant Ihe worm: mm] and any EIJIH Mumlhwanuefdimm The mum obligatinn is es'rl'mnled m be 2.455 ufmuuu factmd. hni umuinlle irwlue 0TH}: nal 3% ufln maivnblls Mural lube $431M\". Baler-III: int-\"I'M! dltlh lmmulun ul Il'nl'n nli puma: {Use I fur increased; D r deem: {II-HE 'JI' bin ljll'uul. lithium: is an Effect, scale the Ila-u nmnuut Irdirme 11m Jtur rst, then III: mink-ct. D4:- nul EIJIDE batman the ]Ht'.l1d min. Do not us: mm. Emmy-Ia, ifymr ans-w is \"Bum-mm! h $4 IIEHJ", m WWII]. Detarmhewe'manm: SilunkJ] ,1\"; .1. Eager-b i Dian-ca :I '3'\" .im EFF 1" aim\" dr Deaf-*5" 1;": F. ET I I\" N .'.l Using the infmndim in Wlilm above: data-min: the: awl m Tutu] Liabililien'. Sflnl-LE] Wm new M3: 1* Hm I] 1.:- E S T I n N I\" Uing III: inrmam in #3 ahnve. dam-mine: 1h: a'ect an. Tam] Md: Equity: $[llnl_3] I 3'3?an ire-11.5 .n. 54*: y\" T' 51?\": J'Ibdf 3;:qu
