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3 years ago

Name at least four factors that a lender investigates when considering whether you are creditworthy.

Business

2 answers:

Vikentia [17]3 years ago

7 0

<span>1.How responsible you are.
2. Living Expenses
3.Money owed
4.Current income</span><span />

siniylev [52]3 years ago

5 0

Answer:

Income, cost of borrowing, default rate, collateral

Explanation:

When borrowing, you need to provide as much information about your financial life as possible to the lender. This is important because in a loan there are risks, for example default. Therefore, the lender will evaluate, among other things, your income, your payment history, the cost of the loan, the average default rate and the collateral you can offer. This causes the lender to minimize the chances of not getting the money back.

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Elm Corporation is a merchandising company. The year began with inventory of $32,000, Purchases for the year were $57,000, and t

Alborosie

Answer:

The cost of goods sold that would be reported on the incoem statement is $70000

Explanation:

The cost of goods sold is the value or cost of the inventory that a business sells to its customers. The cost of goods sold for the year can be calculated using the following formula.

Cost of Goods Sold (COGS) = Opening Inventory + Purchases for the year - Closing Inventory

Thus, Elm Corporation has a cost of goods sold to report on this year's income statement of:

COGS = 32000 + 57000 - 19000 = $70000

4 0

3 years ago

On January 1, Skysong, Inc. had 90,500 shares of no-par common stock issued and outstanding. The stock has a stated value of $5

timama [110]

Answer:

No. of shares outstanding = A

Par Value (at $5) = B

Additional Paid in capital in excess of Par = C

Dividend = D

A B(A*$5) C D

Jan 1 balance 90,500 $452,500 $0

Add: Issued Apr 1 21,000 $105,000 $294000

June 30 Balance 111,500 $557,500 $294,000 $111,500

shares [111,500 shares x $1]

Add: Dec 1 Issued 2,500 shares $12,500 $32,500

Dec 31 Balance 114,000 $570,000 $326,500 $490,200

[114,000 shares x $4.3]

Journal Entries based on above

Date Accounts Titles Debit Credit

15-Jun Dividends $111,500

Dividends payable $111,500

10-Jun Cash $111,500

Dividends $111,500

15-Dec Dividends $490,200

Dividends payable $490,200

6 0

3 years ago

Matt Newell, a former Air Force pilot, decides to operate a helicopter tour company to provide customers with breathtaking views

Keith_Richards [23]

Answer:

Labor

Explanation:

Factor of production: There are several resources that are required in the process of production or running any business to meet the required goal of the business.

There are four factor of production:

Land
Labor
Capital.
Entrepreneurship.

In the given case, Matt Newell is an Entrepreneur as he has started a new helicopter tour company, for which he acquired land and capital from the loan, however, he has not to manage labor for his business. Labor is essential to run any business.

4 0

3 years ago

It is important to manage customer relationships because customers provide a great deal of value to the company if they remain c

qwelly [4]

Answer:

Customer lifetime value predicts how much profit is associated with a customer during the course of their lifetime relationship with a company.

Explanation:

It is important to manage customer relationships because customers provide a great deal of value to the company if they remain customers for many years.

Customer lifetime value is greater for companies who have loyal customers as compared to customers who are one time only. They add less value to the company as customers are also a source of promotion for the company.

7 0

3 years ago

If a payback period for a project is greater than its expected useful life, the ___________.

just olya [345]

Answer: d. Entire initial investment will not be recovered.

Explanation:

The Payback period by definition is the amount of time it will take a Project to recover the initial investment into it. For example, if a project had an investment of $20 million and made $5 million every year, the Payback period would be 4 years.

Now, if the amount of time it will take to recover an investment is longer than the expected amount of time the project will run (expected useful life) then logically speaking that would mean that the Investment would not be entirely recovered because the project will be done before it can pay off the investment hence Option D is correct.

4 0

3 years ago