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3 years ago

Which of the following statements regarding convertible term insurance is true?

1 answer:

8 0

Answer: The annual premium for the cash value coverage is lower if an original-age conversion is used than if an attained-age conversion is used.

Explanation:

A convertible insurance policy is a term that is related to life insurance as it can be changed to a permanent life insurance policy.

Of the options given, the option that is true is that the annual premium for the cash value coverage is lower if an original-age conversion is used than if an attained-age conversion is used.

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Vasudevan Inc. recently reported operating income of $2.30 million, depreciation of $1.20 million, and had a tax rate of 25%. Th

Korvikt [17]

Answer:

free cash flow is 2.352 million

Explanation:

Given data:

operating income is $2.30 million

depreciation $1.20

tax rate is 25%

free cash flow is calculated by using below formula

free cash flow = operating income ( 1- Tax) + depreciation - fixed working capital

= 2.75( 1 - 0.25) + 1.20 - 0.6

= 2.352 million

free cash flow is 2.352 million

4 0

3 years ago

Rachael’s Restaurant, a fast-food restaurant company, operates a chain of restaurants across the nation. Each restaurant employs

netineya [11]

Answer:

a. Advertising costs relative to the number of customers for a particular restaurant. [Fixed]

b. Rental costs relative to the number of restaurants. [Variable]

c. Cooks salaries at a particular location relative to the number of customers. [Fixed]

d. Cost of supplies (cups, plates, spoons, etc.) relative to the number of customers. [Variable]

e. Manager's compensation relative to the number of customers. [Mixed]

f. Servers' salaries relative to the number of restaurants. [Variable]

Explanation:

8 0

3 years ago

Southern california publishing company is trying to decide whether or not to revise its popular textbook, financial psychoanalys

steposvetlana [31]

If the company requires a return of 10 percent for such an investment, calculate the present value of the project.

The present value of the project is $72349.51.

Since we consider only incremental cash flows for a project, we consider $21,600 for year one and calculate a 4% increase for each of the additional years.

We then calculate the Present Value Interest Factor (PVIF) at 10% for four years using the formula :

PVIF = 1 / [(1+r)^n]

Next, we find the product of the respective cash flows and PVIF for each year.

Finally, we find the total of the discounted cash flows for the four years to find the Present Value of the project.

8 0

3 years ago

Phips Co. purchases 100 percent of Sips Company on January 1, 20X2, when Phips' retained earnings balance is $320,000 and Sips'

Taya2010 [7]

Answer:

Phips' post-closing retained earnings balance on December 31, 20X2 = $577,000

Explanation:

Note: When 100% shares of a company is acquired it is treated as subsidiary and for its accounting equity method is used.

In that case all balances of subsidiary are added to balances of Parent company.

But if any dividend is received then such value is deducted from carrying value of investment, and any share in profit will be added to carrying value.

All the retained earnings balance is accumulated together of both companies.

Therefore closing balance shall be

Retained earnings balance of Sips at year end

= $120,000 + $20,000 - $8,000 = $132,000

Year end balance of Phips Alone

= $320,000 + 125,000 = $445,000

Total Retained Earnings at year end = $132,000 + $445,000 = $577,000

3 0

3 years ago

Identical products is a characteristic of a(n) ______ .

Sophie [7]

Identical products is a characteristic of a A. perfect competition.
Here are all of the characteristics of perfect competition:
1. a large number of small firms
2. identical products
3. freedom and resource mobility
4. knowledge of prices and technology

4 0

3 years ago