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3 years ago

How is a line of credit similar to a credit card?

Business

2 answers:

Aloiza [94]3 years ago

8 0

A. Interest is charged only on the amount you actually borrow

Leviafan [203]3 years ago

3 0

The answer for the question that is being asked and shown above is that: "a. Interest is charged only on the amount you actually borrow." a line of credit similar to a credit card is that a. Interest is charged only on the amount you actually borrow.

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Suppose you are the CEO of a start-up toy manufacturer. You know that if your business is to be successful, you have to create a

Sauron [17]

Answer:

a. Leslie, who is independent and self-confident. She doesn’t need people to tell her what to do.

b. Malcolm, who loves to play. His last boss says that Malcolm was the "chief kid" in his last office.

c. Frankie, who has been in the toy business for 10 years and who knows what he’s doing, but who always likes testing a new idea.

Explanation:

In this scenario the CEO of a start-up toy manufacturer wants to create at least 10 wildly different toys in the next three years.

He will primarily need people that are creative and are inclined to work with new ideas.

The wrong choice will be someone who follows the rules and is stable. Such a staff will not contribute new ideas that will move the company to make profits.

Leslie is confident and does not need to be told what to do, so she will take initiative to do new things.

Malcolm loves to play and this will boost creative ideas.

Frankie likes testing new ideas and will be comfortable working creatively.

6 0

4 years ago

Mo Meek, Lu Ling, and Barb Beck formed the MLB Partnership by making capital contributions of $75,600, $294,000, and $470,400, r

MA_775_DIABLO [31]

Answer:

salary allowances of $83,600 to Mo, $62,700 to Lu, and $94,500 to Barb; interest allowances of 10% on their initial capital investments; and the balance shared as follows: 20% to Mo, 40% to Lu, and 40% to Barb.

net income $498,000, total distributions:

Mo = $83,600 + (20% x $257,200) = $135,040
Lu = $62,700 + (40% x $257,200) = $165,580
Barb = $94,500 + (40% x $257,200) = $197,380

First we need to close Income Summary account to each partner's capital account:

December 31, 202x

Dr income summary 498,000

Cr Mo Meek, capital 135,040

Cr Lu Ling, capital 165,580

Cr Barb Beck, capital 197,380

then we close the drawings accounts to the capital accounts of each partner:

December 31, 202x

Dr Mo Meek, capital 39,300

Cr Mo Meek, drawings 39,300

Dr Lu Ling, capital 53,300

Cr Lu Ling, drawings 53,300

Dr Barb Beck, capital 69,300

Cr Barb Beck, drawings 69,300

3 0

3 years ago

Martin Company needs additional time to pay its accounts payable to Boster Company. Martin makes a written promise to pay Boster

Anika [276]

The answer, on the point of view of Boster, is A. Debit notes receivable and credit accounts receivable (not payable i think). This is from the point of view of Boster. So to Boster, he will have an accounts receivable by Martin company. So what Martin did is that he offered a promissory note to Boster. This will increase Boster's notes receivable. At the same time, this will also lessen Boster's accounts receivable since this turned into a notes receivable.

3 0

3 years ago

During the year, Belyk Paving Co. had sales of $2,560,000. Cost of goods sold, administrative and selling expenses, and deprecia

scoundrel [369]

Answer:

Net income -$268,000

Operating Cash Flow $511,000

Explanation:

A. Calculation for the Net income

INCOME STATEMENT

Sales $2,560,000

Cost of goods sold $1,364,000

Other expenses $685,000

Depreciation $477,000

EBIT $34,000

Interest $302,000

Taxable income -$ 268,000

($34,000-$302,000)

Taxes (24%) 0

Net income -$268,000

CALCULATION FOR EBIT

Sales $2,560,000

LESS:Cost of goods sold ($1,364,000)

Other expenses ($685,000)

Depreciation ($477,000)

EBIT $34,000

Based on the information given we were told that we should ignore any tax loss which was why Taxes (24%) was $0

The taxes are zero since we are ignoring any carryback or carryforward provisions.

Therefore NET INCOME is -$268,000

B. Calculation for operating cash flow

Using this formula

Operating Cash Flow = EBIT + Depreciation - Taxes

Let plug in the formula

Operating Cash Flow= $34,000 + $477,000 - 0

Operating Cash Flow = $511,000

Therefore Operating Cash Flow is $511,000

3 0

3 years ago

3 Hame and explain of skills that should be possess by an entrepreneur

vaieri [72.5K]

Answer:

1. Curiosity. Great entrepreneurs are tasked with identifying new problems, identifying potential niche opportunities, refactoring their existing business processes, and innovating. This necessitates a passion for various fields of study and business cases that are outside of one's comfort zone.

2. Time management. Prioritization, milestone definition, execution, and iteration are all critical. None of this would be possible without the proper project management and time allocation methodologies in place to complete the work.

3. Strategic thinking. Learning to break down a problem to its simplest components and identify growth opportunities. Inventive problem-solving and spotting the low-hanging fruit. Defining an MVP's scope and testing concepts in a short amount of time and on a tight budget.

7 0

3 years ago