Answer:
The correct answer is letter "A": 20% of income.
Explanation:
The percentage of savings of people will directly depend on their income. Employees earning the minimum wage are likely to use the most of their salary paying bills which will give them few to no opportunity for saving. On the other hand, executives with annual income above the average have more chances to save a good percentage of the money they receive monthly according to their expenses.
However, for a person who receives an average salary that allows covering expenditure and having some free money a bank account, at least should be saving 20% of that income. Besides, according to the 50/20/30 budget rule, <em>50% of the salary should be spent on needs, 30% on wants, and 20% on savings</em>.
Answer:
$4,469
Explanation:
Calculation for what The adjusted cash balance per the books on January 31 is
Using this formula
Adjusted cash balance = cash balance per books -bank service charges - EFT automatically deducted - NSF Check
Let plug in the formula
Adjusted cash balance= $5325 - $31 -$500 -$325
Adjusted cash balance= $4,469
Therefore The adjusted cash balance per the books on January 31 is $4,469
<u>Solution and Explanation:</u>
<u>Hofstede's four dimensions are </u>
1)Power distance -It is the degree of inequality among the people of the country.
2)Individualism Vs Collectivism- This is the degree which shows how much people are willing to work as individuals and not as members of groups.
3)Uncertainty avoidance- This is the degree which shows how much people prefer structured and not unstructured situations.
4)Masculinity Vs Feminity-This shows the degree of existence of tough values like competition, success, assertiveness, performance over tender values like warm personal relation,taking care of weak,unity,quality of life etc.
It is necessary for managers to understand cultural differences because managers need to understand their employees better so that they can motivate and lead the employees.Due to cultural differences what managers take as granted may be different in different countries.Good example is Wal- mart's expansion in Mexico.Wal mart constructed large parking lot for the customers which surrounded the stand alone building.
This posed problem because many of the customers travelled by public buses to the store. So they had to walk a long way through parking lot. The culture in Mexico is different from US and people travelled by public transport.Later Wal mart had shuttle buses to carry people to and fro from the store.Cultural differences also mean deeply felt values ,customs which are not always easy to identify.
Answer:
Net financing cashflows are $ 35,000.
Explanation:
A company generates cashflow from three activities that are cash from operations , cash from financing activities and cash from investing activities. The company net cash flow is total of these above specified. So we can determine net financing cashflows from the equation given below.
<em>total change in cash = net operating cash flows + net investing cash flows + net financing cash flows</em>
net financing cash flows = $ 35,000
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Answer:
a. It is not a fair deal for me.
The question is how much is $1,000 today when received in 12 months' time from now. The present value of $1,000 at 5% effective interest rate is $952 ($1,000 * 0.952). The other repayment of $1,100 in 2 years' time from now is worth $997.70 today at the 5% effective interest rate. This implies that my friend is repaying me $1,949.70 in present value terms.
For friendship sake, I may lend her the money, but in economic analysis terms, the NPV value will yield a negative value of $50.30 ($2,000 - $1,949.70). My friend is not actually paying me back the amount I would lend to her. She is paying me less than I actually would lend to her.
b. Cash Flow Diagram:
Year 1 Year 2
F1 F2
$1,000 $1,100 (Inflows)
Fo⇵.................⇵.......................⇵...........................⇵n period
Year 0
$2,000 (outflows)
Explanation:
The cash flow diagram for this loan is the graphical representation of the timing of the cash flows with a clear marking of the repayments made by my best friend in two instalments and the $2,000 that I lent to her. This cash flow diagram presents the flow of cash as arrows on a timeline scaled to the magnitude of the cash flow, where outflows are down arrows and inflows are up arrows.
The Net present value (NPV) of this loan shows the difference between the present value of repayments by my best friend and the present value of $2,000 that I lent to her over a period of 2 years. To obtain this difference, the present values of cash inflows of $1,000 in a year's time and $1,100 in two years' time are determined using the discount factor table based on the given interest rate of 5%.
