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3 years ago

What is the relationship between insurance and successful financial management? Why is insurance important?

2 answers:

4 0

Insurance is important because you are insuring items or things that mean something to you, or to protect others,insurance can help in case any accidents happen and you couldn’t get that item back.

harkovskaia [24]3 years ago

3 0

Successful financial management is the proper use of your money to maximize your income, whether in the financial market or a productive investment such as a trade or factory. Efficient financial management also consists of emergency planning and protection against unexpected situations that could put your assets at risk. Like for example a fire. It is in this sense that insurance is important. Insurance is a contract you make with an insurer to protect your assets if that event occur. For example, if you take out fire insurance, if a fire occurs in your home or business, the insurer will reward what you have lost financially, according to the terms of the contract.

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In the process of reconciling its bank statement for January, Maxi's Clothing's accountant compiles the following information:

Troyanec [42]

Answer:

$4,469

Explanation:

Calculation for what The adjusted cash balance per the books on January 31 is

Using this formula

Adjusted cash balance = cash balance per books -bank service charges - EFT automatically deducted - NSF Check

Let plug in the formula

Adjusted cash balance= $5325 - $31 -$500 -$325

Adjusted cash balance= $4,469

Therefore The adjusted cash balance per the books on January 31 is $4,469

5 0

2 years ago

Below are several transactions for Meyers Corporation for 2018.

Marta_Voda [28]

Answer:

$6,900

Explanation:

The cash flow statement includes three types of activities which are listed below:

1. Operating activities: This involves all transactions that after net income impact the working capital. It would subtract the rise in current assets and a reduction in current liabilities, while adding the decline in current assets and an increase in current liabilities.

It would adjust those changes in working capital. In addition, the depreciation cost is added to the net income, and the loss of asset sales is reduced, while the profit on asset sales is deducted

It also involve cash receipts and cash payments.

2. Investing activities: It tracks operations that include buying and selling long-term properties. The buying is a cash outflow whereas the sale is a cash inflow

3. Financing activities: It tracks transactions that have an impact on long-term debt and equity balance of shareholders. Share issue is a cash inflow while redemption and dividend are cash outflows.

So, the classification and the amount of cash flows is shown below:

a. Issue common stock for cash, $44,000 = $44,000 = Financing activities

b. Purchase building and land with cash, $29,000 = ($29,000) = Investing activities

c. Provide services to customers on account, $6,400 = Not applicable as this transaction does not involve any cash.

d. Pay utilities on building, $700 = ($700) = Operating activities

e. Collect $4,400 on account from customers = $4,400 = Operating activities

f. Pay employee salaries, $8,400. = ($8,400) = Operating activities

g. Pay dividends to stockholders, $3,400. = ($3,400) = Financing activities

So, the cash flow would be

= $44,000 - $29,000 - $700 + $4,400 - $8,400 - $3,400

= $6,900

7 0

3 years ago

Typing, Inc. has been an S corporation since its inception. On July 4, 2019, Typing distributed $50,000 to Jerusha. Her basis in

lisabon 2012 [21]

Answer:

Answer is $15,000

$6,000 share of ordinary income plus $9,000 gain for a $50,000 distribution in excess of her $41,000 stock basis.

3 0

3 years ago

Windathon, Inc. expects sales volume totaling $500,000 for June. Data for the month follows:

ivann1987 [24]

Answer:

Here the variable cost can be computed using the following formula:

Variable cost = (Sales commissions + Shipping expense + Miscellaneous selling expenses) ×Sales

Variable cost = (4% + 1% + 3/4%) x $500,000 = $28,750

Fixed cost = Sales manager's salary + Advertising expense + Miscellaneous selling expenses

= $30,000 + $25,000 + $2,100

= $57,100

Total selling expense budget = Variable cost + Fixed cost

= $28,750 + $57,100

= $85,850

8 0

3 years ago

During 2021, Farewell Inc. had 500,000 shares of common stock and 50,000 shares of 6% cumulative preferred stock outstanding. Th

grigory [225]

Answer:

a) c. $4.34

b) b. $4.10

Explanation:

a) Find Farewell's diluted earnings per share for 2021.

Use the formula below:

Diluted EPS = (Net income after tax - preferred dividend) / diluted common stock

$= \frac{2,500,000 - (50,000*100*0.06)}{500,000+(200,000 - ((29*10,000)/30))}$

$= \frac{2,500,000 - 300,000}{500,000 + (200,000 - 193,333)}$

$= \frac{220,000}{506,667}$

$= 4.34$

Diluted EPS = $4.34 per share

b) stock options = 5,000

Value in current shares = 500,000/12 = $4,167

Diluted shares = 5000 - 4167 = 833

Use the formula below to find the diluted earnings per share:

Diluted EPS = Net income/share outstanding

$= \frac{269,915}{50,000 +(20,000-5,000) + 833)}$

$= \frac{269,915}{50,000 + 15,000 + 833}$

$= \frac{269,915}{65,833}$

$= 4.10$

Diluted EPS = $4.10 per share

8 0

3 years ago