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3 years ago

If an investment is considered “volatile”, it means

Business

1 answer:

KengaRu [80]3 years ago

4 0

Answer:

The dictionary meaning of the term volatile is changeable and dynamic.

In the market, if an investment is volatile, then the market price of such an investment is at the risk of changing rapidly due to the impact from macroeconomic and market conditions and influences.

For an example, a fixed deposit is less volatile than stocks in a share market. Shares are more volatile than government bonds.

Explanation:

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Alpha Ltd has appointed you as a manager in the budgeting department. The company has provided the following information to prep

nasty-shy [4]

Answer and Explanation:

The preparation of the cash flow budget is presented below:

Cash Flow Budget

Particulars Jan 2021 Feb 2021 Mar 2021 Apr 2021 May 2021 Jun 2021

Opening Balance $1,000 $1,400 $2,000 $4,600 $8,300 $11,700

Sales $4,000 $4000 $6,000 $7,500 $7,500 $7,500

(2,000 × 2) (2,000 × 2) (2,000 × 3) (2,500 × 3) (2,500 × 3) (2,500 × 3)

Total Cash Inflow $5,000 $5,400 $8,000 $12,100 $15,800 $19,200

Less: Cash payments

Less: Bonus to employees $1,000 $800 $800 $800 $1,500 $1,500

(5,000 × 20% ) (4,000 × 20% ) (4,000 × 20% ) (4,000 × 20% ) (7,500 × 20% ) (7,500 × 20% )

Less: Overhead Cost 2,000 2,000 2,000 2,000 2,000 2,000

Less: Direct material & Direct Labor 500 500 500 500 500 500

Less: Fixed Cost 100 100 100 100 100 100

Net cash generated (A) 400 600 600 4100 3400 3400

Opening Cash balance (B) 1000 1400 2000 2600 6700 10100

Closing Balance (A+B) 1400 2000 4600 8300 11700 15100

Balance as on 30 June 2021 = 15100

We simply deduct all cash payments from the all cash receipts so that the ending balance or closing balance could come

3 0

4 years ago

Cash Flows. Quick Computing currently sells 10 million computer chips each year at a price of $20 per chip. It is about to intro

Tema [17]

Answer:

Since net revenue has increased from $140 million to $246 million = $106 million by considering all costs thus all the costs and revenue shall be considered.

Explanation:

For calculating the present value, all the cost and revenue will be considered.

Original revenue = Sale of 10 million chips

10 million $\times$ $20 = $200 million

Less: Cost = 10 million $\times$ $6 = $60 million

Net Revenue = $140 million

In case of introducing new chips

Revenue will be as follows

12 million $\times$ $25 + 3 million $\times$ $20

= $300 million + $60 million = $360 million

Less: Costs 12 million $\times$ $8 + 3 million $\times$ $6

= $96 million + $18 million = $114 million

Net Revenue = $360 - 114 = $246 million

Since net revenue has increased from $140 million to $246 million = $106 million by considering all costs thus all the costs and revenue shall be considered.

3 0

3 years ago

Last year there was no change in either the raw materials or the work in process beginning and ending inventories. However, fini

dsp73

Answer:

d. $625,000

Explanation:

cost of goods available for sale = cost of goods manufactured during the current period + finished goods inventory at the beginning of the period

cost of goods manufactured during the current period = $600,000
finished goods inventory at the beginning of the period = $25,000

cost of goods available for sale = $600,000 + $25,000 = $625,000

cost of goods sold = cost of goods available for sale - ending inventory = $625,000 - $40,000 = $585,000

7 0

3 years ago

A 38-year-old investor places $25,000 into a single premium qualified deferred variable annuity. Twenty years later, with the ac

Bad White [126]

The total tax liability is $12,500.

<h3>What is the total tax liability? </h3>

Due to the fact that the account is qualified annuity, the total amount withdrawn is subject to tax. Also, because the investor is less than 59.5 years, the investor pays an additional tax of 10%.

The effective total tax = 25% + 10% = 35%

Total tax liability = 25% x $50,000

= 0.25 x $25,000 = $12,500

To learn more about taxes, please check: brainly.com/question/25311567

6 0

2 years ago

A company uses a periodic inventory system and during the December 31, year-end physical inventory count discovered that they ha

never [62]

Answer:

Debit: Shrinkage expense $300

Credit: Inventory $300

Explanation:

When your business experiences shrinkage, you must adjust your accounting books. Record inventory losses by increasing your Shrinkage Expense account and decreasing your Inventory account.

Debit your Shrinkage Expense account and credit your Inventory account.

To adjust for shrinkage, create a journal entry that looks like this:

Debit Shrinkage expense account by $300

Credit Inventory account $300

5 0

3 years ago