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3 years ago

In what way do consumers benefit from being low-risk borrowers ?

1 answer:

soldier1979 [14.2K]3 years ago

3 0

One risk of lenders is not being repaid. The greater the chance that you wont be paid, the higher interest you will charge as compensation for taking the risk. Loan also involves little risk, you will be wiling to accept lower interest rate. That is the reason why federal government can borrow at lower rates than private parties.

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C93, Inc. sells three products. Income statement information for the three products for the most recent year is given below: Pro

aleksandrvk [35]

Answer:

14,560 units.

Explanation:

Variable costs for Product A = $140,000 / 7,000 units

Variable costs for Product A = $20

Avoidable costs for Product A:

Advertising $23,800

Rent $17,300

Supervisor's salary $31,700

Avoidable costs for Product A $72,800

Contribution margin per unit = $25 - $20 = $5

Economically indifferent units = Avoidable costs for Product A/Contribution margin per unit

Economically indifferent units = $72,800 / $5

Economically indifferent units = 14,560 units

So therefore, the number of units of Product A that would need to be sold next year is 14,560 units.

5 0

3 years ago

The Gardner Company expects sales for October of $247,000. Experience suggests that 40% of sales are for cash and 60% are on cre

LenKa [72]

Answer: $74100

Explanation:

Based on the information given, the amount of cash expected to be collected in October will be calculated thus:

October, credit sales will be:

= 60% x $247000

= $148200

Since the amount that'll be collected in October will be 50% of the credit sales. This will be:

= 50% × $148200

= $74100

6 0

3 years ago

When inventory costs are rising, a company may prefer to use the __________ method in the perpetual system in order to pay the l

mezya [45]

Answer:

LIFO (Last-in-last-out)

Explanation:

Last in last out is the method of inventory valuation where the unit that was added in inventory last would be sold first. In case, of rising prices, the unit added in inventory would cost more than the one added first. So, if LIFO is used in case of rising prices, cost of goods sold would be higher. If COGS is higher, income will fall, thereby reducing tax liability.

So, if the firm wants to pay lower taxes during price rise, it should opt for LIFO method to value inventory.

8 0

4 years ago

A company acquires a subsidiary and will prepare consolidated financial statements for external reporting purposes. For internal

NemiM [27]

Answer:

It is a relatively easy method to apply.

Explanation:

When accounting for a subsidiary, equity method is followed, whenever the shareholding percentage is equal or more than 20%.

But here, the parent company uses, initial value method for internal reporting.

Under initial value method the value of investment in subsidiary is recorded at cost, and then adjusted at year end at fair value, this clearly shows the gain or loss at each year end from such investment as per market norms.

There is no statutory requirement to follow such initial value method for internal reporting.

The correct reason therefore, is:

It is a relatively easy method to apply.

7 0

4 years ago

Since you were given ____ time to complete your project , i can see no excuse for your failure to complete it

Flura [38]

An unlimited amount of time

5 0

4 years ago

Read 2 more answers