The answer is B. Adjustable rate mortgage is a mortgage loan where the interest rate stays for for a certain period of time then it changes either up or down based on an index. It is also called variable-rate mortgage or tracker mortgage. This type of mortgage loan permits a debtor to have a lower initial payment if and only if they agree to assume the risk of the changes in the interest rate.<span>
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The fixed ordering cost would be:
The total amount of ordering cost - The total variable costs that incurred on the orders.
The fixed cost in this context refers to the type of cost that wouldn't be affected by the amount og goods/materials that being ordered in the transacitons.
Answer:
Explanation:
As the loan has not been used yet, it will stay in the Loan account of the bank. The balances on the books for ACME will therefore be,
Reserves - $151,000.
It does not change as loan has not been used yet. If Toshi was to use loan then this figure will reduce because withdrawals are given from the Bank reserves.
Checkable Deposits will increase by the loan amount as that was where Toshi was credited to.
= 140,000 + 28,000
= $168,000
Loans - $28,000
The bank will now have a loan balance of $28,000 on its debit side to reflect the loan it just gave out.
Stock Shares - $286,000.
Not affected by the transaction.
Property - $275,000
Not affected by the transaction.
Answer:
the balance sheet is missing:
Balance Sheet (In millions of Dollars)
ASSETS
Cash $6.0
Accounts Receivable 14.0
Average Inventory 12.0
Fixed Assets, net 40.0
TOTAL ASSETS $72.0
LIABILITIES AND EQUITY
Accounts Payable $10.0
Salaries and Benefits Payable 2.0
Other current Liabilities 10.0
Long-term debt 12.0
Equity 38.0
TOTAL LIABILITIES AND EQUITY $72.0
a. Determine the length of the inventory conversion period.
- inventory conversion period = average inventory / (COGS/365) = 73 days
b. Determine the length of the receivables conversion period.
- receivables conversion period = accounts receivables / (net sales/365) = 51.1 days
c. Determine the length of the operating cycle.
- length of operating cycle = 73 + 51.1 = 124.1 days
d. Determine the length of the payables deferral period.
- length of the payables deferral period = accounts payables / (COGS/365) = 60.83 days
e. Determine the length of the cash conversion cycle.
- cash conversion cycle = 73 + 51.1 - 60.83 = 63.27 days
f. What is the meaning of the number you calculated in Part e?
- How long does it take to turn inventories into cash, it is a measure of asset liquidity.
