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3 years ago

The first step in building a good credit record is _____.

Business

1 answer:

Mekhanik [1.2K]3 years ago

8 0

Answer: open a savings account

From the given choices (apply for a credit card, open a savings account, apply for a car loan, open a store credit account), the first step in building a good credit record is to open a savings account.

Bank accounts can help you access credit and acquire a home, a car, a personal loan because banks favor existing customers, especially those who manage their money well.

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The Nellie Company has provided the following information: Operating expenses were $115,000; Gross profit was $629,000; Cost of

mrs_skeptik [129]

Answer:

A) $514,000.

Explanation:

Operating income = Gross profit - Operating expenses

Operating income = $629,000 - $115,000

Operating income = $514,000

6 0

2 years ago

Decision makers and analysts look deeply into profitability ratios to identify trends in a company’s profitability. Profitabilit

ahrayia [7]

Answer:

If a company has a profit margin of 10%, it means that the company earned a net income of $0.10 for each dollar of sales. A 10% PROFIT MARGIN MEANS THAT THE COMPANY EARNED 10 CENTS FOR EVERY DOLLAR OF REVENUE.
If a company's operating margin increases but its profit margin decreases, it could mean that the company paid more in interest or taxes. OPERATING PROFIT = GROSS PROFIT - FIXED COSTS, NET PROFIT = OPERATING PROFIT - (INTERESTS AND TAXES). IF TAXES OR INTERESTS INCREASE, NET PROFITS DECREASE

Explanation:

there are several profitability ratios, the most important ones are:

profit margin = net profit / total revenue
gross profit margin = gross profit / total revenue
return on equity = net income / total shareholder equity
return on assets = net income / total assets

4 0

3 years ago

ou are trying to decide whether to accept or reject a one-year project. The project is estimated to generate $5,000 in increment

Papessa [141]

Answer:

$3,190

Explanation:

Incremental net income before tax = Incremental gross profit - Incremental SG&A expenses

= $5,000 - $400

= $4,600

Incremental net income after taxes = Incremental net income before tax * (1 - Tax rate)

Incremental net income after taxes = $4,600 * (1 - 0.35)

Incremental net income before tax = $4,600 * 0.65

Incremental net income before tax = $2990

Incremental cash flow = Incremental income after taxes + Depreciation

Incremental cash flow = $2,990 + $200

Incremental cash flow = $3,190

3 0

3 years ago

C&A sells T-shirts for $20 that cost $5 to produce. The annual holding cost percentage is 10% and the T-shirts turn 25 times

Angelina_Jolie [31]

Answer:

B. $0.02

Explanation:

The computation is shown below:

Since the annual holding cost percentage is 10% and the cost of production is $5. So, the holding cost would be

= $5 × 10%

= 0.5

Now if the t-shirts run 25 times a year, so the holding cost would be

= 0.5 ÷ 25 times

= $0.02

Simply we compute the holding cost based on number of times the t-shirt turns in a year

All other information which is given is not relevant. Hence, ignored it

8 0

3 years ago

Fischer Company uses 12,000 units of a part in its production process. The costs to make a part are: direct material, $15; direc

Trava [24]

Answer:

Difference= $60,000 in favor of buying

Explanation:

Giving the following information:

Number of units= 12,000

Make in-house:

Direct material, $15

direct labor, $27

variable overhead, $15

applied fixed overhead, $32

Buy:

Buying price= $60

If Fischer buys the part, 75 percent of the applied fixed overhead would continue.

First, we will calculate the avoidable fixed overhead per unit:

Avoidable fixed overhead= 32*0.25= $8

Now, the total differential cost of making in-house:

Total cost of production= 12,000*(15 + 27 + 15 + 8)

Total cost of production= 12,000*65

Total cost of production= $780,000

Total cost of buying= 60*12,000= $720,000

Difference= $60,000 in favor of buying

4 0

2 years ago