Answer:
The importer accepts this price, so his bank will <u>debit</u> the importer's account in the amount of <u>$500000</u>
Explanation:
Debiting an account removes money from the account. Crediting an account adds money to the account.
The bank will therefore <em>debit</em> his account because the money will be taken out and paid to the exporter.
The amount that the importer pays in dollars can easily be calculate as:
€512,100 / €1.0242 = $500000
<u>Calculation of Acid Test Ratio:</u>
Acid test ratio can be calculated with the help of following formula;
Acid test ratio = (Cash + Short-term investments+ Accounts receivable) / Total current liabilities
= (4000+65000+61000) / 100000
= 1.3
Hence, Acid test ratio is <u>1.3</u>
(Note: We don’t consider inventories and prepaid expenses for the calculation of Acid test ratio because these assets are not quick assets.)
Answer:
$2,730,000
Explanation:
Operating activities: It includes those transactions which affect the working capital after net income. The increase in current assets and a decrease in current liabilities would be deducted whereas the decrease in current assets and an increase in current liabilities would be added.
These changes in working capital would be adjusted. Moreover, the depreciation expense is added to the net income
The preparation of the Cash Flows from Operating Activities—Indirect Method is shown below:
Cash flow from Operating activities - Indirect method
Net income $2,500,000
Adjustment made:
Add : Depreciation expense $160,000
Add: Decrease in accounts receivable $350,000
Less: Decrease in accounts payable -$280,000
Total of Adjustments $230,000
Net Cash flow from Operating activities $2,730,000
Atnswer:
b. lifecycle fund
Explanation:
as from now to 2050 are still remaining 31 years, the money invested is able to go under different risk profiles, looking for getting the maximun return, the lifecycle fund is an excellent choice, it is because this kind of strategies changes according the risk of its costumer changes. it is expected to have during the first years a high exposition to risk such as equity or derivatives, and the more age of the costumer the lower risk profile, so the closer to 2050 the more expected investment into low risk assets, such as fixed income (this is made for having the less losses possible)
Answer: Deciding
Explanation:
The normative decision model is one of the type of theory that helps in explain the various types of optimal decisions that specifically helps calculating the accuracy of the given decision outcome.
It basically provide the various types of prescriptive function and also the various types of rules that helps in maximizing the total outcome of the decision making concept.
According to the given question, the Kevin is basically demonstrating the deciding process based on the normative decision model as he announces that the 25% of the employees salaries is basically depending upon their specific performance in an organization.
Therefore, Deciding is the correct answer.
