What are the 4 C's of lending?

An entrepreneur purchased an existing bicycle shop that had between $120,000 and $150,000 worth of sales annually for the past t

stepan [7]

Answer:

Forecasted sales: 25% maximum reduction.

Recommendations: try new ways to increase sales during the months left, or reduce its own cost.

Explanation:

If sales usually increase between March 1 and June 30, and this period accounts for 50% of annual revenue, if revenue is proportional to sales, a reduction in sales will reduce revenues.
Between March 1 and June 30 there are 4 months.
If sales usually pick up in March and this year they were low until the beggining of May, it means that only 2 of the 4 most productive months were higly productive.
If 50% of sales are concentrated in this 4 months, and this year 2 of the 4 months were not really productive, a maximum 25% of sales (and hence of revenues) may have lost.
Therefore, revenues may lower by 25% this year.
To avoid losses, it is advisable to try new ways to increase sales during the months left, that can consist on doing some advertisement and promotions (related to health care linked to exersice for example), that helps increasing sales in the months left, to compensate the looses of the 2 months. If sales cannot be increased, it is advisable to reduce cost to avoid further looses.

6 0

3 years ago

Assume you graduate from college with $26 comma 000 in student loans. If your interest rate is fixed at 4.70% APR with monthly

mylen [45]

Answer:

$271.97

Explanation:

For this question we use the PMT i.e monthly payment that is presented on the attached spreadsheet. Kindly find it below:

Data provided in the question

Given that,

Present value = $30,000

Future value = $0

Rate of interest = 4.70% ÷ 12 months = 0.391666%

NPER = 10 years × 12 months = 120 months

The formula is shown below:

= PMT(Rate;NPER;-PV;FV;type)

The present value come in negative

So, after solving this, the monthly payment is $271.97

3 0

3 years ago

What is the naming system developed by carolus linnaeus?.

Lady_Fox [76]

Answer:

binomial nomenclature

Explanation:

You can just look it up to prove that it is right

6 0

3 years ago

Suppose that the tuna industry is in long-run equilibrium at a price of $5 per can of tuna and a quantity of 350 million cans pe

SCORPION-xisa [38]

Answer:

More; increasing supply and earning profit; entering the market; reducing the profit to zero; horizontal.

Explanation:

The claim by WebMD that the protein in tuna would lead to 2 Years increase in life expectancy would cause the demand to increase at every price. The demand curve will consequently shift to right.

As a result the firms in short run will supply more and enjoy profits.

Since the firms were facing long run equilibrium and were enjoying zero profit, an increase in price will cause profit to firms.

Since in the short run firms can not enter or exit they will continue producing.

In the long run attracted by the profit earned by existing firms, the new firms will enter the market till all the firms are having zero profits.

In the tuna industry the new firms will start production, so the industry supply will increase causing a rightward shift in the supply curve.

In the long run the shape of the supply curve of the industry will be horizontal.

3 0

3 years ago

Price and Cost (Pvt) Ltd Company makes a single product, whose unit budget details are as follows: BWP BWP

oksano4ka [1.4K]

Answer:

Freee pts but follow me and heart my all answer

3 0

3 years ago