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Tanzania [10]
3 years ago
7

Tidewater Distributors is successfully using short-term financing to buy inventory for resale. As sales climb, the managers real

ize that they must decide what to do with the money. Since you are the financial manager, they ask for your advice. You advise them to firstA) repay the short-term obligations out of the sales revenue.
B) use the money to buy a yacht for the managers.
C) increase all employees' wages.
D) enroll all the salespeople in a sales training course.
E) borrow more money.
Business
2 answers:
zysi [14]3 years ago
8 0

Answer:

A) repay the short-term obligations out of the sales revenue.

Explanation:

Tidewater should use their profits to try to lower their total debts, specially short term obligations. The problem with short term obligations is that the company continuously needs an inflow of cash to repay them.

It is not something unusual for retailers to take 1-3 month credits to purchase and resell merchandise, but they always have the risk of not being able to sell enough merchandise one month to cover their costs and their debt payments.

Long term debt is always more manageable since you have more than a year to pay them back and the interest rates are usually lower.

Naily [24]3 years ago
8 0

Answer:

A)

Explanation:

Based on the information provided within the question it can be said that I would advise them to first repay the short-term obligations out of the sales revenue. This is because debt needs to be always be payed first as it allows you to use the rest of the money as pure profit and prevents unexpected problems later on.

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Compare two loans:Loan 1: $175,000; 8% annual (monthly payments); 30 years.Loan 2: $175,000; 7% annual (monthly payments); 15 ye
Nitella [24]

Answer:

Following are the responses to the given question:

Explanation:

For the First loan payment period is value:

\to NPER(\frac{8\%}{12},-250-PMT(\frac{8\%}{12},12\times 30,-175000),175000)=215\  months

For the second loan payment period is value:

\to 15\times 12=180 \ months

that's why the loan will be paid off soon.

4 0
3 years ago
Which of the following falls under the category of current position analysis? a.Number of days' sales in inventory b.Inventory t
Tamiku [17]

Answer:

The answer is D

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Hope this answer helps you :)

Have a great day

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3 0
3 years ago
2. A couple would like to take a cruise to Alaska, 15 months from now. They have $1500 in a savings account. The savings account
ivann1987 [24]

Answer:

a.- $ 3,529.82  

b.-  $ 3,512.11

c.-  $   132,77

Explanation:

In each case, we must calculate the value of their current savings and the additional investment.

The saving are the same for each scenario so let's calculate that first:

Principal \: (1+ r)^{time} = Amount

Principal 1,500.00

time 15 years

rate 0.01000

1500 \: (1+ 0.01)^{15} = Amount

Amount 1,741.45

Then we add the funds generated from the investment:

a.- 110 annuity due for 15 month:

C \times \frac{(1+r)^{-time} -1}{rate}(1+r) = FV\\

C  $ 110

time 15 months

rate 0.01

110 \times \frac{(1+0.01)^{15} -1 }{0.01} = FV\\

FV $1,788.3651

We add the savings and get a total of:  $ 3,529.82  

b.- 110 ordinary annuity

C \times \frac{(1+r)^{time} -1}{rate} = FV\\

C  $ 110

time 15 months

rate 0.01

110 \times \frac{(1+0.01)^{15} -1}{0.01} = FV\\

FV $1,770.6585

Plus, original savings of 1,741.45 =  3,512.11  

c.-

If they need 3,900 then the fund must cover the difference between these and the savings future value:

3,900 - 1,741.45 = 2,158.55

Now we calculate the PMT, considering the payment are at the beginning:

FV \div \frac{(1+r)^{time} -1 }{rate}(1+r) = C\\

FV  $ 2,158.55

time  15

rate           0.01

2158.55 \div \frac{(1+0.01)^{15} -1}{0.01} (1+0.01) = C\\

C  $ 132.770

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Read 2 more answers
Interest groups are often categorized by the causes or people they represent. Match each example of a specific interest group to
agasfer [191]

Public action committees (PAC) is an example of a specific interest group that was established primarily to influence election.

<h3>What is an interest group?</h3>

An interest group can be defined as a group that comprises individuals who are only concerned about influencing policies of the government based on their interests, cause, common aims, goals, or people they represent.

In the United States of America, some examples of interest groups include the following:

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