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Aleks [24]
2 years ago
7

Speculators:

Business
1 answer:
nalin [4]2 years ago
7 0
The correct option is B.
Speculators refers to those people who specialize in trading commodities, bonds, equities, currency, etc by taking larger than average risks in respect of future increase in price in order to make quick and large profits. 
When a speculative investor decides that there are possibility of future increase in the price of a certain commodity, he buys up that commodity in large quantity and wait until there is increase in price, he then sell the commodity to make profits.
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Last year Harrington Inc. had sales of $325,000 and a net income of $19,000, and its year-end assets were $250,000. The firm’s t
posledela

Answer:

Based on the DuPont equation and given information, ROE of Harrington Inc is 13.818%.

Explanation:

We have to find the total equity and total debt of Harrington Inc in order to apply the DuPont equation for finding ROE because net income, sales of Harrington Inc. are already given.

- To find Harrington Inc's total debt, apply the Debt-to-capital formula: The Harrington Inc's total debt/The Harrington Inc's total capital = 45% =>  Harrington Inc's total debt = The Harrington Inc's total capital * 45% = $250,000 x 45% = $112,500;

- To find Harrington Inc's total equity, apply the accounting equation Asset = Liabilities + Owner's Equity: The Harrington Inc's total equity = The Harrington Inc's total asset - The Harrington Inc's total debt = $250,000 - $112,500 = $137,500;

- Using the Dupont equation, calculate the ROE as followed:

(NI/Sales)* (Sales/ Total assets) * (Total assets/ Total common equity) = (19,000/325,000) * ( 325,000/ 250,000) * (250,000/137,500) = 13.818%.

- Thus, the ROE = 13.818%.

5 0
3 years ago
Which of the following statements about annuities are true?
viktelen [127]

Answer:

A)The first cash flow of an annuity due is made on the first day of the agreement.

D)The last cash flow of an ordinary annuity is made on the last day covered by the agreement.

Explanation:

An annuity can be regarded as a series of payments which is made at an stable intervals. It can be classified based on the payment frequency. These could be monthly home mortgage payments,

It should be noted that in annuities,

✓The first cash flow of an annuity due is made on the first day of the agreement.

✓The last cash flow of an ordinary annuity is made on the last day covered by the agreement.

6 0
2 years ago
A machine can be purchased for $202,000 and used for five years, yielding the following net incomes. In projecting net incomes,
FinnZ [79.3K]

Answer:

2.36 years

Explanation:

Payback calculates the amount of time it takes to recover the amount invested in a project from it cumulative cash flows.

To derive cash flows from net income, depreciation expenses should be added to net income.

Depreciation expense using the double declining method = Depreciation factor x cost of the asset

Depreciation factor = 2 x (1/useful life) = 2 / 5 = 0.4

Deprecation expense in year 1 = 0.4 x $202,000 = $80,800

Book value in year 2 = $202,000 - $80,800 = $121,200

Deprecation expense in year 2 = 0.4 x $121,200 = $48,480

Book value in year 3 = $121,200 - $48,480 = $72,720

Deprecation expense in year 3 = 0.4 x $72,720 = $29,088

Book value in year 4 = $72,720 - $29,088 = $43,632

Deprecation expense in year 4 = $43,632 x 0.4 = $17,452.80

Book value in year 5 = $43,632 x 0.4 - $17,452.80 = $26,179.20

Deprecation expense in year 5 = $26,179.20 x 0.4 = $10,471.68

Cash flow in year 1 = $18,000 +  $80,800 = $98,800

Cash flow in year 2 = $25,000 + $48,480 = $73,480

Cash flow in year 3 = $53,000  + $29,088 = $82,088

Cash flow in year 4 = $58,000  + $17,452.80 = $75,452.80

Cash flow in year 5 = $108,000 + $10,471.68 = $118,471.68

Please check the attached image for how the payback period was calculated

3 0
3 years ago
Read 2 more answers
College students often buy cheap pizza because it’s more affordable. Suppose after graduating, college students find high paying
Margarita [4]

Answer:

D) The demand for cheap pizza will decrease because demand for cheap pizza is negative related to income.

As students finds high paying job, they are now able to buy more expensive pizza, which means that a number of customers for cheap pizza will be decreased

5 0
2 years ago
Whispering Winds Corporation owns equipment that cost $64,800 when purchased on April 1, 2013. Depreciation has been recorded at
Aleonysh [2.5K]

Answer:

(a) update depreciation for 2018

Debit ; Depreciation $10,800

Credit Accumulated Depreciation  $10,800

(b) record the sale

Debit : Cash $12,960

Debit : Accumulated Depreciation $62,100

Credit : Profit and Loss $10,260

Credit : Equipment at Cost $64,800

Explanation:

(a) update depreciation for 2018

Recognize deprecation

(b) record the sale

Recognize proceeds from sale and profit or loss from sale

7 0
3 years ago
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