Answer:
Pension benefit plan
Explanation:
A pension benefit plan is one where an employee promises to make a lump payment or a series of payments to an employee on retirement.
There is a guaranteed payment for the employee upon retirement.
It includes employee's pay, years of employment, and age at point of retirement.
As the pension benefit plan takes into consideration the number of years served by the employee it will be a perfect fit for Mr. Reuben's staff.
Answer:
Avoidable interest is $272,064.
Explanation:
Compute the interest on new notes payable, using the equation as shown below:
Interest = Principalof 13% note payable × Rate of interest
=$1,059,300×13%
=$137,709
Hence, the interest of new notes payable is $137,709.
Compute the interest of outstanding notes payable using the equation as follows:
Interest = Outstanding principal × Weighted average interest rate
=$1,268,700×10.59%
=$134,355
Hence, the interest of outstanding principal which is needed to be considered for the calculation of avoidable interest is $134,355
Avoidable interest is $272,064.
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Answer:
The current ratio is 2.75
The acid-test ratio is 1.36
Explanation:
In order to calculate the current ratio we would have to make the following calculatio:
Current Ratio
=Current Assets/Current Liabilities
Current Assets = Cash + Receivables + Inventory + Other current assets
= 109 + 101 + 189 + 25 = $424 million
Current Liabilities = Accounts Payable + Current portion of long term debt = 112 + 42 = $154 million
Therefore, current ratio=$424/$154
current ratio= 2.75
In order to calculate the acid-test ratio for Airline Accessories we would have to make the following calculation:
Acid - Test Ratio
=Cash + Receivables/Current Liabilities
Acid - Test Ratio=$210/$154
Acid - Test Ratio=1.36
Answer:
Costco should advertise more.
Explanation:
Costco is following traditional ways to advertise its products. Most of the organizations prefer to spend huge sums of money on advertising its products. Costco should advertise its products and reach out to its customers and potential customers through marketing. It spends no budget on advertising. It only sends targeted emails to its existing customers. This strategy will not enhance its customer portfolio and new customers might not reach out the company.
