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garik1379 [7]
3 years ago
8

A client, age 67, owns his own home free and clear. The customer has an annual income of $25,000, mainly from social security an

d interest on funds held in a bank savings account. The customer has never invested and is told by his nephew that the technology company that he works for is coming out with a hot new product that will really increase the company's stock price. The BEST recommendation to be made to this client is to:
Business
1 answer:
FromTheMoon [43]3 years ago
3 0

Answer:

The best recommendation to be made to this client is to do nothing.

Explanation:

Investment in stock is a highly risky investment because price of stock often fluctuates which can make an investor to lose a lot of money.  

From the question, the client is already old at age 67 with a low income and he does not have any other liquid assets apart from the annual income of $25,000, mainly from social security and interest on funds held in a bank savings account.

Since losing so much money through investment in stock is not affordable to him, the best recommendation to be made to this client is to that he should do nothing.

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You have saved​ $120,000 for your child to attend college. If it is in an account earning an annual rate of​ 8%, how much can yo
harkovskaia [24]

Answer:

I will take $36,230.5 to pay for the education of child.

Explanation:

Cash Invested in the saving account will earn a return of 8% each year and this amount could be withdrawn by the me to pay for the education of child.

We will use following formula to calculate the annual payments

P = r ( PV ) /  [ 1 - ( 1+ r )^-n ]

where

PV = amount of investment = $120,000

r = rate of return = 8%

n = number of period = 4 years

P = 8% ( 120,000 ) / [ 1 - ( 1 + 0.08 )^-4 ]

P = 36,230.5

3 0
3 years ago
Using the following information: 12/31/17 Accounts receivable $526000 Allowance (35700 ) Cash realizable value $490300 During 20
yawa3891 [41]

Answer:

The change in the cash realizable value from the balance 12/31/17 to 12/31/18 was $37,840 increase.

Explanation:

Cash realizable value of accounts receivable is simply the amount that is deemed recoverable after factoring the portion that is uncollectible.

The effects of the transactions during the year are as follows:

Sales on account:

Debit Accounts receivable                            $145,400

Credit Sales revenue                                     $145,400

<em>(To recognize the sales on account)</em>

Collections on account:

Debit Cash                                                      $100,000

Credit Accounts receivable                           $100,000

<em>(To recognize collections on account)</em>

Write-off:

Debit Allowance for doubtful accounts            $3,960

Credit Accounts receivable                               $3,960

<em>(To recognize write-off of outstanding accounts receivable)</em>

Therefore, the effects of the foregoing journals on Accounts receivable are: $526,000 + $145,400 - $100,000 - $3,960 = $567,440.

As at 12/31/18, cash realizable value would be $567,440 - $39,300 = $528,140. The change in the cash realizable value from the balance at 12/31/17 to 12/31/18 was therefore $528,140 - $490,300 = $37,840 (increase).

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3 years ago
American express established a consulting program that sent expert teams of employees into nonprofits to solve organizational pr
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<span>The answer is skill-based volunteering or volunteerism. It is a tactical type of volunteerism that allows professionals to make use of their skills to impact nonprofits to help make stronger their operation and services. Also it fosters cross-departmental cooperation and has been proven to improve a company’s performance.</span>

5 0
3 years ago
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Answer:

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Explanation:

Retained Earnings are the retained profits that the company keeps with itself, for meeting any case of emergency or for growing company and thus, meeting the growing expenses.

Each year when company earns profits and then, it distributes its profits in the form of dividends, the balance remaining after paying the dividends is added to retained earnings.

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Which type of utility can only be added by the maker of the product
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A: The four types of economic utility are form, time, place and possession. "Utility" in this context refers to the value, or usefulness, that a purchaser receives in return for exchanging his money for a company's goods or services.

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3 years ago
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