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3 years ago

Which of the following is not one of the three advantages of dealing with a financial intermediary?

2 answers:

6 0

One of the disadvantages of dealing with a financial intermediary would be: <span> A financial intermediary shares risks.</span>

Natasha_Volkova [10]3 years ago

5 0

Answer: A financial intermediary creates financial assets.

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First, we will start with annual depreciation. We will always use straight-line depreciation in this course Consider a firm that

NARA [144]

Answer:

Annual Depreciation expense = $15695.7692 rounded off to $15695.77

Explanation:

We first need to calculate the cost of the equipment. The cost at which an equipment or asset should be recorded should include all the costs incurred to bring the asset into the place and condition necessary for its use as intended by the management. Thus the cost of the equipment will be,

Cost = 165891 + 42172

Cost = $208063

Now we can calculate the depreciation expense per year based on the straight line depreciation method using the following formula,

Annual Depreciation expense = (Cost - Salvage Value) / Estimated useful life

Annual Depreciation expense = (208063 - 4018) / 13

Annual Depreciation expense = $15695.7692 rounded off to $15695.77

6 0

3 years ago

Arciba Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 7,400

n200080 [17]

Answer:

$27.20

Explanation:

The computation of the predetermined overhead rate is shown below:

= Variable overhead rate per hour + Fixed Overhead rate per hour

where,

Variable overhead rate per hour is $9.50

And, the fixed overhead rate per hours is

= budgeted fixed manufacturing overhead ÷ direct labor hours

= $130,980 ÷ 7,400

= $17.70

So, the predetermined overhead rate is

= $9.50 + $17.70

= $27.20

By adding the variable overhead rate per hour and the fixed overhead rate per hour we can find out the predetermined overhead rate

7 0

3 years ago

"Flo is considering three mutually exclusive options for the additional space she plans to add to her specialty women's store. T

Komok [63]

Answer: Option(b) is the correct option.

Explanation:

According to the question,we are provided with investment value which is $148,000.

Therefore, Net present value (NPV)of Children Clothing will be calculated as :-

$121,000 - $148,000 = - $27,000

Thus, a negative value of NPV of children clothing is obtained which is not an acceptable value option.

Now ,Net present value(NPV) of Exclusive gift is as follows:-

$178,000 - $148,000= $30,000

As the obtained NPV value for exclusive gift option is $30,000 which is a positive value, it can be accepted

Now, calculation of NPV of decorator items is as follows:-

$145,000 - $148,000= - $3,000

Net present value of decorator items is obtained as -$3,000 which is a negative value.Thus, it is not acceptable.

Therefore, the correct option is option(b) because it as positive value of NPV and decorator items and children clothing as negative NPV value which makes them unacceptable .

3 0

3 years ago

A small business invests $9,900 in equipment to produce a product. Each unit of the product costs $0.65 to produce and is sold f

Lelechka [254]

Answer:

To break even the company must sell

Explanation:

The position at which the company is at no profit and loss position then it is said that the company is at breakeven position.

Break-even position can be found from the following position:

Breakeven position = Fixed cost / contribution per unit

The fixed cost here is initial investment which is $9900 and the contribution can be found by taking the difference between selling price per unit and variable cost per unit. The contribution per unit is $0.55 per unit ($1.2 - $0.65). By putting values in the above equation we have:

Breakeven position = $9900 / $0.55 per unit = 18000 Units

So 18000 units are required to sell to reach at a no profit no loss position.

3 0

3 years ago

Your company buys a computer system from IBM for $3 million and pays IBM $200,000 to install the computer system. The $3 million

Effectus [21]

Answer:

$3.2 million

Explanation:

Calculation to determine what The acquisition cost of the computer system at the end of the current year will be

Using this formula

Acquisition cost=Purchase price+ Installation cost

Let plug in the morning

Acquisition cost= $3 million +$200,000

Acquisition cost=$3.2 million

Therefore The acquisition cost of the computer system at the end of the current year will be $3.2 million

3 0

3 years ago