Ask question

Ask question

All categories

3 years ago

7

Which of the following statements is true about financial planning?

2 answers:

Studentka2010 [4]3 years ago

8 0

Which of the following statements is true about financial planning?

B) You must always consider the tax consequences of selling your investments.

Answer B is the best choice for the question because you must always considered the tax consequences when selling investments. Investments are always taxed whether it be initially or at the time of sale and that needs to be kept in mind if selling under value especially. You are recommended to check your financial plans often to make sure they are aligning with your goals.

kenny6666 [7]3 years ago

3 0

Answer:

B)You must always consider the tax consequences of selling your investments.

Explanation:

You might be interested in

What does a money market account offer that a certificate of deposit (CD)

ruslelena [56]

Answer: A. You can withdraw money at any time.

Explanation:

4 0

3 years ago

What is the maximum price that government allows sellers to charge

oksian1 [2.3K]

I think it's called a price ceiling. At least, that's what I think it is.

4 0

3 years ago

Accounts receivable arising from sales to customers amounted to $80,000 and $70,000 at the beginning and end of the year, respec

vichka [17]

Answer:

b. $290,000

Explanation:

The computation of the cash flows from operating activities to be reported on the statement of cash flows is shown below:

= Net income reported on the income statement + decrease in account receivable

where,

Net income reported = $280,000

And, the decrease in account receivable is $10,000 ($70,000 - $80,000)

So, the cash flow from operating activities

= $280,000 + $10,000

= $290,000

The decrease in account receivable implies that more cash is come so it would be added and the same is shown above

5 0

3 years ago

Edwards Company manufactures low-cost wooden chairs and uses activity-based costing. The following information is for the month

Airida [17]

Answer:

$37.80

Explanation:

Particulars Amount Calculations

Direct materials $7.00

Handling $2.80 ($3,500/5,000*4 parts)

Assembling $9.60 ($12,000/5,000*4 parts)

Packaging <u>$18.40 </u> ($5,750/1,250*4 parts)

Total manufacturing cost per chair <u>$37.80</u>

3 0

3 years ago

Beckett, Inc., has no debt outstanding and a total market value of $200,000. Earnings before interest and taxes, EBIT, are proje

FrozenT [24]

Answer:

Beckett, Inc.

Earnings Per Share:

a-1. Earnings Per Share:

Economic Conditions Normal Expansion Recession

Earnings before interest and taxes = $30,000 $35,400 $24,000

Earnings per share:

Recession = $24,000/8,000 $3.00

Normal = $30,000/8,000 $3.75

Expansion = $35,400/8,000 $4.43

a-2. Percentage changes in EPS:

Recession = -$0.75/$3.75 x 100 = -20%

Expansion = $0.68/$3.75 x 100 = 18.13%

b-1. EPS after recapitalization:

Economic Conditions Normal Expansion Recession

Earnings before interest and taxes = $30,000 $35,400 $24,000

Interest at 8% $8,000 $8,000 $8,000

Earnings after interest $22,000 $27,400 $16,000

Earnings per share:

Recession = $16,000/8,000 $2.00

Normal = $22,000/8,000 $2.75

Expansion = $27,400/8,000 $3.43

b-2. Percentage changes in EPS:

Recession: -$0.75/$2.75 x 100 = -27.27%

Expansion: $0.68/$2.75 x 100 = 24.73%

Explanation:

1. Data:

Market Value = $200,000

Economic Conditions Normal Expansion Recession

Earnings before interest and taxes = $30,000 $35,400 $24,000

Issue of debt for $75,000 with 8% interest

Proceeds to repurchase shares of stock.

Outstanding shares = 8,000

Ignore taxes

5 0

3 years ago