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2 years ago

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

Business

2 answers:

Vikentia [17]2 years ago

7 0

1.How responsible you are.
2. Living Expenses
3.Money owed
4.Current income

siniylev [52]2 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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During 2015, Wright Company sells 470 remote-control airplanes for $110 each. The company has the following inventory purchase t

Kaylis [27]

Answer:

Cost of Good Sold Using Fifo $40,570

Ending inventory using Fifo $3,600

Ending inventory Using Specific Identification can not be calculated as the total sales (555) exceeds the available inventory (510)

Explanation:

8 0

3 years ago

Identify the correct statement. Select one: a. During a recession, investment increases while consumption decreases. b. During a

lesantik [10]

Answer:

Option C: Annual variations in investment are larger than annual variations in consumption

Explanation:

Investment

This is simply the act of buying or purchase of assets with the sole aim of increasing future income.

Investment risk

This is simply known as the likelihood of an investment will fail to pay the expected return or fail to pay a return at all.

Portfolio diversification

This act so as to limit the risk by spreading investment money among a wide range of investment tools.

Rate of return

This is simply known as the total return on an investment usually in percentage of the amount of money put into the investment.

8 0

3 years ago

What other inspiring realizations helped Andrew Feld come up with the idea for his startup? List and rank them in order accordin

soldier1979 [14.2K]

The other inspiring realizations that helped Andrew Feld to come up with the idea for his startup, Fresh Patch, were as follows:

Idea: His pet gave him some idea that he could build a patch bathroom to enable his dog to ease whenever nature comes calling. When he tried it out with the dog and saw the success, he engaged his need for income to start marketing the product to others.

Necessity: Since he was unemployed with a pregnant wife, he realized that he could do something with his time. This made him to try the bathroom for dogs idea that his pet needed. He needed some income to cater for his family.

A Big Vision: The other realization is that the first year could be tough and will-breaking. Then, he also realized that a big vision could be realized if one works hard at it.

Thus, these realizations greatly helped Andrew Feld for his startup, Fresh Patch.

Read more about inspiring ideas for business startups at brainly.com/question/11671311

6 0

2 years ago

Regina is looking to start a knitting business and completes a target market profile to include in her business plan. Identify w

mojhsa [17]

In order to get the item and recategorizing it Regina needs to have in mind the Demographics it means facts about the economic status of the people, Geographics which means where customers live, Psychographics which means to determine the people's attitudes and beliefs and the Buying Patterns which means how they use their money. With that in mind you can see which item is not related

6 0

3 years ago

Black Sparrow Aviation, Inc. is concerned they are not maintaining adequate liquidity. The accounting department has provided yo

viktelen [127]

Answer:

Black Sparrow Aviation, Inc.

1. Indications from ratios about Black Sparrow Aviation:

The current ratio of 4.5 is higher than the industry's norm of 4.0. This indicates that working capital elements are not being managed properly. This is supported by the the remaining four ratios. Inventory level is not optimal. More inventory is held without being sold to customers. Obviously, from the inventory turnover of 6.0 translating to approximately 61 days that it takes the company to sell its inventory as against the industry average of 35 days, it shows that the marketing and sales forces lack stamina. Debt collection from customers is over-delayed, showing poor credit policy and management. Perhaps, it takes the company many days to issue invoices. More time than necessary is allowed to customers to pay compared to the industry norm. In addition, payments are made to suppliers 11 days earlier than the industry average. Advantage is not being taken of trade credit offered by suppliers. Trade credit is an important source of funding operations, which every company should utilize to the maximum.

2A. Based on the above ratios, I would recommend:

1. Minimum inventory should be maintained.

2. Sales efforts should be intensified, so that more sales are made each year than it is currently the case.

3. Debt collection is an important activity for every company that sells on account. This activity should be taken seriously. Credit extension to customers should not exceed 50 days.

4. Payments to suppliers can be delayed by more 10 days without offending suppliers.

2B. Results from Recommendations:

1. Working capital is not tied in inventory.

2. More debts are recovered from customers and on time. Delay increases credit default.

3. More sales are made to customers, increasing the turnover. The profit is always in the frequency of turnover.

4. Short-term financing is obtained from suppliers, which strengthens liquidity.

Explanation:

Liquidity management is a financial management tool, which describes a company's ability to meet financial obligations through cash flow, funding activities, and capital management in order to minimize the risks associated with illiquidity.

Calculation, analysis, comparison of ratios are some of the ways to make informed decisions on liquidity management. Ratios should be compared over many periods, with best performing competitors, and the industry norm to ascertain the position of the reporting entity.

8 0

3 years ago