Answer:
A)
Explanation:
Based on the scenario being described within the question it can be said that the type of unemployment that best describes this would be Cyclical Unemployment. This term refers to unemployment that is caused when the overall demand that exists in a market for the goods and services cannot support full employment within the economy. Such as in this case since the economy is weak and ultimately caused these individuals to lose their jobs.
Answer: $18,750.00
Explanation: So what you'll do is (12,500 * 2) + 12,500 / 2 = 18,750
Answer:
25%
Explanation:
Given: Sales= $10,000,000
Cost of goods sold= $5000000.
Pre-tax earning= $500000.
Merchandise inventory= $80000.
Total assets= $2000000.
Now, computing the value of return on assets.
Formula; 
⇒ 
⇒ 
∴ Return on assets= 
Hence, Flinger´s return on assets is 25%
Answer:
a. AIE will have to borrow $25,5102.04
b. The Effective Rate on this Loan is 6.63%
c. If AIE can convince the bank to remove the compensating balance requirement the effective rate is 6.50%
Explanation:
In order to calculate how much will AIE have to borrow we would have to use the following formula:
Amount to be borrowed = Cost of Truck / (1 - Compensating balance)
Amount to be borrowed = $250000 / (1 - 0.02)
a. Amount to be borrowed = $25,5102.04
In order to calculate the effective rate on this loan we calculate the following:
Effective Rate on this Loan = Interest / Amount received
Effective Rate on this Loan = 16581.63 / 250000
b. Effective Rate on this Loan = 6.63%
c. If AIE can convince the bank to remove the compensating balance requirement the Effective rate = annual rate, hence the effective rate is 6.50%
