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1 year ago

How differently would you allocate assets between an elderly couple and a young entrepreneur?

1 answer:

8 0

According to conventional wisdom regarding asset allocation by age, you should hold a proportion of stocks equal to 100 minus your age. Therefore, if you are 40 years old, 60% of your portfolio should consist of equity. Criteria might be better changed to 110 minus your age or 120 minus your age because life expectancy increasing.

By deducting your present age from 100, you can utilize rule of thumb to determine your asset allocation. It implies that as you get older, you should shift away from equity funds and toward debt funds and fixed income assets in your asset allocation.

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The account balances of Sentinel Travel Service for the year ended August 31, 2019, are listed below:

Yanka [14]

Answer:

Explanation:

The preparation of the report form balance sheet as of August 31, 2019 is presented below:

Sentinel Travel Service

Report form balance sheet

For the year ended August 31, 2019

Assets

Cash $143,125

Account receivable $54,240

Supplies $9,300

Land $248,000

Total assets $454,665

Liabilities

Account payable $19,370

Owner equity

Ending capital $435,295

Total liabilities

And owners equity $454,665

The net income would be

= Fees earned - Office expense - Miscellaneous expense - Wages expense

= $774,800 - $178,205- $15,495 - $371,905

= $209,195

And, the ending capital would be

= Opening capital - withdrawn amount + net income - additional cpiatl

= $209,000 - $29,400 + $209,195 + $46,500

= $435,295

7 0

3 years ago

Tara wants to put a small portion of every paycheck into a low-risk investment. which would be her best option?

nydimaria [60]

Tara's best option to put a small portion of every paycheck into a low-risk investment is investing in an S&P 500 index fund.

<h3>What is a paycheck?</h3>

A paycheck can be defined as a financial document that is issued by an employer to an employee as payment for the work done over a period of time.

<h3>What is risk tolerance?</h3>

In Insurance, risk tolerance can be defined as the willingness of an individual or organization to take a risk in business transactions and investments, in order to get a potentially positive reward.

Generally, the high risk that is associated with investments such as stocks, high-yield bonds, etc., is often perceived by investors to be worth the higher reward these investment brings.

In this scenario, we can reasonably infer that Tara's best option to put a small portion of every paycheck into a low-risk investment is investing in an S&P 500 index fund.

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6 0

1 year ago

Kramer and Knox began a partnership by investing $58,000 and $65,000, respectively. During its first year, the partnership earne

IRISSAK [1]

Answer and Explanation:

The computation is shown below:

1. At the time when the partner failed to share the incom and loss so it is assume that the net income i.e. $160,000 should be shared equally so for both it is $80,000 each

2. When the income is shared as per their initial investment

<u>Particulars Kramer Knox Total </u>

Investment $58,000 $65,000 $123,000

Investment ratio 47.15% 52.85%

$160,000 income share $75,440 $84,560 $160,000

3. Sharing of the income as per the defined rule

<u>Particulars Kramer Knox Total</u>

Salary allocated $56,500 $46,500 $103,000

Interest at 12% $6,960 $7,800 $14,760

Remaining balance $21,120 $21,120 $42,240

Total $84,580 $75,420 $160,000

3 0

3 years ago

Various financial data for the past two years follow. LAST YEAR THIS YEAR Output: Sales $ 200,000 $ 220,000 Input: Labor 30,000

Gelneren [198K]

Answer and Explanation:

1.Total productivity = output/input

For last year

Output = 200,000

Input = 30000+35000+5000+50000+2000

= 122000 dollars

Output/input = 200000/122000 = 1.64

For current year

Output = 220000

Input = 40000+45000+6000+50000+3000

= 144000

Output/input = 220000/144000

= 1.53

Percentage change = [(1.53-1.64)/11.64} x 100

= -6.70

Partial measure of labor

For last year

Output = 200000

Input = 30000

Output/input = 200000/30000 = 6.67

For current last

Output = 220000

Input = 40000

Output/input = 220000/40000

= 5.50

Percentage change = (5.5-6.67)/6.67*100

= -17.54%

Percentage measure of raw material

For last year

Output = 200000

Input = 35000

Output/input = 200000/35000 = 5.71

For current year

Output = 220000

Input = 45000

Output/input = 220000/45000 = 4.89

Percentage change = (4.88-5.71)/5.71 * 100

= -14.36%

Percentage measure of capital

For last year

Output = 200000

Input = 50000

Output/input = 200000/50000 = 4

Current year

Output = 220000

Input = 50000

Output/input = 220000/50000 = 4.40

Percentage change = (4.40 - 4.00)/4.40 x 100

= 10%

The overall percentage change for total productivity is negative, this tells us that productivity is on a decline. Partial measure of labor and raw material is decreasing but that of capital is increasing

6 0

3 years ago

Suppose a company purchased land and a building for $20,000,000 cash. The appraised value of the building was $17,000,000, and t

sladkih [1.3K]

Answer:

The amount of the purchase price will be allocated to the Land account is $6,400,000

Explanation:

For computing the purchase price of the land, first we have to compute the weightage of both the fixed assets which are shown below:

For building = Appraised value of building ÷ total value of fixed assets '

= $17,000,000 ÷ $25,000,000

= 68%

where,

Total value of fixed assets = Appraised value of the building + appraised value of the land

= $17,000,000 + $8,000,000

= $25,000,000

For land = Appraised value of land ÷ total value of fixed assets '

= $8,000,000 ÷ $25,000,000

= 32%

So, the purchase price of the land equal to

= Total purchase price of fixed assets × weightage of land

= $20,000,000 × 32%

= $6,400,000

6 0

2 years ago