Adams Co. reports the following balance sheet accounts as of December 31. Salaries payable $ 7,100
Retained earnings $ 61,000
Buildings 72,600
Notes payable (due in 9 years) 52,000
Prepaid rent 8,100
Office supplies 4,200
Merchandise inventory 16,200
Land 44,000
Accounts payable 21,000
Accumulated depreciation-Building 7,200
Prepaid insurance 5,200
Mortgages payable (due in 5 years) 34,000
Accounts receivable 15,000
Cash 38,000
Common stock 21,000
Required:
Prepare a classified balance sheet. (Amounts to be deducted should be indicated by a minus sign.)

The treasurer for pittsburgh iron works wishes to use financial futures to hedge her interest rate exposure. she will sell five treasury futures contracts at $139,000 per contract. it is july and the contracts must be closed out in december of this year. long-term interest rates are currently 7.30 percent. if they increase to 9.50 percent, assume the value of the contracts will go down by 20 percent. also if interest rates do increase by 2.2 percent, assume the firm will have additional interest expense on its business loans and other commitments of $149,000. this expense, of course, will be separate from the futures contracts. a. what will be the profit or loss on the futures contract if interest rates increase to 9.50 percent by december when the contract is closed out

What impact might an economic downturn have on a borrower’s fixed-rate mortgage? a. it might cause a borrower’s payments to go up. b. it might cause a borrower’s payments to go down. c. it has no impact because a fixed-rate mortgage cannot change. d. it has no impact because the economy does not affect interest rates.

You should do all of the following before a job interview except