Creative product differentiation can enable a small business to increase market share.

Identify the careers that require a college degree

Genrish500 [490]

Except:
photographer..video equipment installer

6 0

3 years ago

Ordinary repairs meet all of the following criteria except: Multiple Choice Are expenditures to keep an asset in good operating

spin [16.1K]

Answer:

The correct answer is letter "B": Extend the useful life of an asset beyond its original estimate by several years.

Explanation:

Ordinary repairs refer to routine maintenance that equipment and machinery need to work over its estimated useful life. It does not aim to extend the life of the equipment but helps meeting the estimated time a company plans to use those assets. In accounting terms, ordinary repairs demand to record a debit to an expense account and a credit to a cash account.

7 0

3 years ago

Exercise 13-17 Swifty Company has been operating for several years, and on December 31, 2017, presented the following balance sh

mixer [17]

Answer:

(a) Current ratio = 2.746

(b) Acid-test ratio = 1.423

(c) Debt to assets ratio = 47.48%

(d) Return on assets = 6.15%

Explanation:

For Balance Sheet, pleased see attached file.

Current Ratio = Current Asset / Current Liabilities

Current Ratio = 212,800 / 77,500

Current Ratio = 2.746

Acid-Test Ratio = (Current Assets – Inventories) / Current Liabilities

Acid-Test Ratio = (212,800 – 102,500) / 77,500

Acid-Test Ratio = 1.423

Debt to Asset ratio = (Total Liabilities / Total Assets)*100

Debt to Asset ratio = (205,500 / 432,800)*100

Debt to Asset ratio = 47.48%

ROA = (Net Income / Total Assets)*100

ROA = (26,600 / 432,800)*100

ROA = 6.15%

The Current Ratio is a liquidity measure that shows the ratio between current asset and current liabilities. It tells how many dollars of the current asset are per dollar of current debts, that gives an idea of the company`s ability to perform its debts.

The Quick Ratio is also a liquidity indicator, but using its most liquid assets, to pay its current liabilities at maturity. The inventory, although it is a current asset, is not considered, since it cannot be converted into cash in a very short term.

The difference between the Quick Ratio and the Current Ratio, implies that while both are measures of the company's ability to pay its debts, the quick ratio also tells how much the company depends on its inventory to get that objective.

The Debt to Assets ratio is a financial ratio that shows how much of a company assets is owed to its creditors.

ROA is a financial indicator that gives an idea as to how efficient a company's management is at using its assets to generate earnings, by determining how profitable a company is relative to its total assets.

6 0

3 years ago

Assume that you are the portfolio manager of the SF Fund, a $3 million hedge fund that contains the following stocks. The requir

borishaifa [10]

Answer:

11.11%

Explanation:

The full question with table is attached.

We need the rate of return formula using Capital Asset Pricing Model (CAPM). The formula is:

$R=R_f+\beta(R_m-R_f)$

Where

R is rate of return (what we need)

$R_f$ is risk-free return rate (5% = 0.05)

$R_m$ is the market rate of return (11% = 0.11)

To get $\beta$ , we take the weighted average of the portfolio.

Weight of Stock A = 1,075,000/3,000,000 = 0.3583

Weight of Stock B = 675,000/3,000,000 = 0.225

Weight of Stock C = 750,000/3,000,000 = 0.25

Weight of Stock D = 500,000/3,000,000 = 0.1667

Portfolio Beta = (0.3583*1.2) + (0.225*0.50) + (0.25*1.40) + (0.1667*0.75) = 1.02

Now, we calculate rate of return using CAPM formula:

$R=R_f+\beta(R_m-R_f)\\R=0.05+1.02(0.11-0.05)\\R=0.1112$

That is 11.12%, or from answer choice, it is 11.11%

7 0

3 years ago

A bank agrees to lend via simple loan $100 today to Thomas. The agreement is based on that the yearly interest rate is 15%. If T

Ede4ka [16]

Answer:

$404,55 (cumulative) or $250 (american)

Explanation:

This explanation considers a cumulative interest rate in the simplest way. And american amortization system. Consider that there is also French and German systems which works differently depending on the way the loan reimbursed

Cummulative Interest Rate:

Consider this:

If Thomas had to return it in one year he would have to return $115 ($100+15%) which is equal to 100*(1+0.15)

Now, at the begining of the second year, his debt is $115, and at the end its $115+15% = 132,25. Which is equal 100*(1+0.15)*(1+0.15), this is equivalent to 100*(1+0.15)^{2}

The general formula for cummulative interest is C(1+i)^{n}

Where

C = is the loan amount [in this case: 100]

i = is the interest rate [in this case: 0.15]

n = is the number of periods until [in this case: 10]

American System

The american system is quite straight forward:

Thomas should pay $15 every year for 10 years, and with the last payment he should pay $115.

This is because in this system Thomas returns the capital (the amount of the loan) at the end; and each year he only pays the interest .

$15*10 + $100 = $250

7 0

3 years ago