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bixtya [17]
3 years ago
14

The Stewart Company has $2,014,500 in current assets and $785,655 in current liabilities. Its initial inventory level is $402,90

0, and it will raise funds as additional notes payable and use them to increase inventory. How much can its short-term debt (notes payable) increase without pushing its current ratio below 2.0
Business
1 answer:
Bond [772]3 years ago
3 0

Answer:

$20,145

Explanation:

The computation of short-term debt (notes payable) increase is given below:-

Current Assets = $785,655

Current Liabilities = $4,02,900

Current Ratio = (Current Assets + Increase in Inventory) ÷ (Current Liabilities + Increase in Notes Payable)

2.0 = ($785,655 + x) ÷ ($4,02,900 + x)

$805,800 + 2.0 = $785,655 + x

$805,800 - $785,655 = 2.0 - x

= $20,145

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Vanessa bought a house for $268,500. She has a 30 year mortgage with a fixed rate of 6.25%. Vanessaâs monthly payments are $1,59
Musya8 [376]

Answer:

Ans. A) $9,314.45

Explanation:

Hi, first we have to bring to present value the monthly payments to be made for 30 years (360 months). In order for this to be useful, we have to convert this annua compounded monthly rate (6.25%) to an effective rate, that is 6.25% / 12 = 0.5208%. Now, when we find this present value, we are going to substract it from the price of the house and that is the value of the down payment. But let´s just go ahead and do it together.

We have to use this formula to bring to present value the $1,595.85 monthly payments, for 30 years (360 months) at a rate of 6.25% (0.5208% monthly).

PresentValue=\frac{A((1+r)^{n}-1) }{r(1+r)^{n} }

It should look like this

PresentValue=\frac{1,595.85((1+ 0.005208 )^{360}-1) }{0.005208(1+0.005208)^{360} }

Present Value=259,185.55

Now, let´s go ahead and find the down payment.

DownPayment=Price-PresentValue

DownPayment=268,500-259,185.55= 9,314.45

So, the answer is a). $9,314.45

Best of luck.

5 0
3 years ago
Which of the following BEST represents a mission​ statement? A. Our goal is to honor and empower wounded warriors. B. We strive
BabaBlast [244]

Answer:

B. We strive to be the worldwide leader in sharing delicious tastes and creating joyful memories

Explanation:

There are two concepts i.e mission and vision. The mission statement is the statement in which it talks about the company goals and objective that represent the present condition of which market should be targeted, its geographical location, etc

While on the other hand the vision statement refers to position of the company in the future. It is always for the long term as it is always thinking for the future where the company what to be.

Based on the above explanation, the option B is correct as it depicts the mission statement.

4 0
3 years ago
The Allowance for Bad Debts account has a debit balance of $ 9 comma 000$9,000 before the adjusting entry for bad debts expense.
Yakvenalex [24]

Answer:

the amount of the adjustment in the Allowance for

Bad Debts​ account  $3.000

Explanation:

Initial Balance  

Allowance for Uncollectible Accounts  $ 9.000

END Balance  

Allowance for Uncollectible Accounts  $ 12.000

The adjustment entry in the accountig will be

Bad debt expense  $ 3.000  

Allowance for Uncollectible Accounts   $ 3.000

3 0
3 years ago
An economy in which more effort is devoted to the production of services than to the production of goods is called the:
kirza4 [7]
The economy is the service economy
4 0
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In which stage of the product life cycle is it important to broaden distribution of the product?
EleoNora [17]
<span>Broadening the distribution of the product is important during the growth phase of the product life cycle, to meet the expected demand after the introduction phase and acceptance of the product, thereby avoiding opportunity loss and increase it's market share.</span>
6 0
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