<span>Assume
that Jocelyn is comparing two fixed-rate loan options, a 15 year and a
30 year mortgage. Both options have the same interest rate and amount
borrowed. The 30 year, when compared to the 15 year loan will have a lower monthly payment and a higher total cost when
repayment is completed.
The longer the spread of an annuity payment the lower the monthly payment and the higher the total cost of the loan.
</span>
Answer:
Luther Corporation
Current Ratio for 2006 is closest to:
1.1 : 1
Explanation:
a) Data and Calculations:
Total Current Assets = $144 million
Total Current Liabilities = $132 million
Current Ratio = Current Assets/Current Liabilities
= $144/$132
= 1.1 : 1
b) Luther Corporation's current ratio is a liquidity measure that shows Luther's ability to pay off short-term obligations worth $132 million or those due within one year with its current assets of $144 million. The ratio tells investors and analysts of Luther Corporation how Luther can use its current assets to pay off its current debts. Since Luther's current ratio is higher than 1, it is considered good, depending on the industry average. This means that Luther's current ratio of 1.1 : 1 should not be considered in isolation, but in comparison with other firms in the industry and its performance over a number of years.
When surplus <span>funds are set aside (idling the excess) and the government does not spend the money nor apply it to past debt, this action does not cause expansion or contraction.
That statement is true. Expansion or contraction happens when the amount of Government budget is accumulated or decreased as the result of last year's operations</span>
Answer:
$284,000
Explanation:
ABC Corporation
Consolidate Income Statement
For the year ended, 31 December, 20XX
Particulars ABC XYZ
Sales $500,000 320,000
Less: Expenses <u>$(280,000) $(240,000)</u>
Net Income $220,000 $80,000
Consolidated Income for the year under the proprietary theory approach for ABC corporation = $220,000 + (80,000 × 80%) = $220,000 + 64,000
= $284,000
According to the proprietary theory approach, the wholly-owned company will get the same percentage it owns the proportionate of that subsidiary company or companies.
