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valentina_108 [34]
3 years ago
6

In situation with high risk,credit might create further problems for the borrower.explain.​

Business
1 answer:
rewona [7]3 years ago
3 0

Answer:

Yes, In situation of high risk credit will create more problem due to bankruptcy.

Explanation:

I Think if business will buy more credit in times of high risk then business will end up in stage of bankcruptcy because in that situation business will making poor profits and no revenue so it won't be able to pay back debt.

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Income statement information for Einsworth Corporation follows: Sales $1,500,000 Cost of goods sold 900,000 Gross profit 600,000
Semenov [28]

Answer:

A vertical analysis income statement uses Sales as a base and makes everything else a percentage of sales.

                                            Vertical Analysis Statement

                                                     Amount                     Percentage

Sales                                       $1,500,000                         100%

Cost of Goods sold                ($900,000)                          60%

Gross Profit                               $600,000                          40%

Cost of Goods sold percentage = 900,000 / 1,500,000

= 60%

Gross Profit percentage = 600,000 / 1,500,000

= 40%

6 0
2 years ago
Raleigh Co. has the following products in its ending inventory. Compute the lower of cost or market total for inventory applied
Flura [38]

Answer:

<u>c. $2,018.00</u>

Explanation:

Lower of cost or market is the inventory valuation method which requires to record the inventory at a value lower of

  • Initial cost of inventory ( Manufacturing cost or Purchasing cost )
  • Market value of the Inventory ( Net realizable value of the market )

Product__Quantity__Cost per unit__Market per unit___ Lower ____Value

Jelly _____150 ______$2.00 ______2.15___________ $2.00____ $300

Jam _____ 370 _____ $2.65 ______2.50 __________ $2.50 ____ $925

Marmalade 260 _____ $3.10 ______3.05  __________ $3.05 ____ $793

Total Value ___________________________________________<u>$2,018</u>

6 0
3 years ago
Highway 151 Inc. can further process 2,500 pounds of Product C to produce Product M. Product C is currently selling for $36 per
Grace [21]

Answer:

$27,500

Explanation:

Revenue from the sale of  Product C = $36 × 2500

                                                             = $90,000

Cost to produce Product C = $14 × 2500

                                             = $35,000

Revenue from the sale of Product M = $47 × 2500

                                                              = $117,500

Differential Total Net Revenue of producing Product M

= $117,500 - $90,000

= $27,500

4 0
3 years ago
Read 2 more answers
The operations vice president of Security Home Bank has been interested in investigating the efficiency of the bank’s operations
AURORKA [14]

Answer:

The computation of the activity rates for the activity-based costing system is shown below:-

Explanation:

                        Opening     Processing     Processing     Other        Totals

                        accounts     Deposits and     other          activities

                                             Withdraws       Customers

                                                                      transactions

Teller wages  $5,800         $108,750          $26,100      $4,350     $145,000

Assistant

branch

manager

salary             $4,800         $6,600              $16,200       $32,400   $60,000

Branch

manager

salary           $3,760           $0                     $20,680      $69,560    $94,000

                    $14,360         $115,350           $62,980      $106,310

Working Note

                        Opening     Processing     Processing              Other    

                        accounts     Deposits and     other                  activities

                                             Withdraws       Customers

                                                                      transactions

Teller

wages ($145,000 × 4%)  ($145,000 × 75%) ($145,000 × 18%) ($145,000 × 3%)

Assistant

branch

manager

salary  ($60,000 × 8%) ($60,000 ×11%) ($60,000 × 27%) ($60,000 × 54%)

Branch

manager

salary ($94,000 × 4%) ($94,000 × 0%) ($94,000 × 22%) ($94,000 × 74%)

Activity                      Activity cost        Cost drivers      Activity rate

Opening accounts    $14,360                230                  $62.43

Processing deposits

and Withdrawals       $115,350              51,000              $2.26

Processing other

customers

transactions               $62,980             1,150                  $54.77

4 0
3 years ago
On January 1, 2015, East Lansing, Inc, issues $2,000,000 of 10 percent, 5-year bonds that pay interest of $100,000 semiannually.
Trava [24]

Answer:

The answer is option D

Explanation:

The bond can be issued at par, at a discount or at a premium depending on the coupon rate and the market interest. The price of the bond which pays semi annual coupon can be calculated using the formula of bond price. The formula to calculate the price of the bond is attached.

First we need to determine the semi annual coupon payment, periods and YTM.

Semi annual coupon payments = 2000000 * 0.1 * 6/12 = 100000

Semi annual periods = 5 * 2 = 10

Semi annual YTM = 0.08 * 6/12 = 0.04

Bond Price = 100000 * [(1 - (1+0.04)^-10) / 0.04]  +  2000000 / (1+0.04)^10

Bond Price = $2162217.916

The price of the bond is thus $2162290 approx. The difference in answers is due to rounding off.

5 0
3 years ago
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