Answer:
the maximum loan size is $1,278,335.62
Explanation:
The computation of the maximum loan size is as follows:
= (NOI first year ÷ debt coverage rate) × 1 ÷ (rate of interest) × (1 - 1 ÷ (1 + rate of interest)^number of years)
= ($150,000 ÷ 1.5) × 1 ÷ (6%) × (1 - 1 ÷ (1 + 6%)^(25))
= $1,278,335.62
hence, the maximum loan size is $1,278,335.62
We simply applied the above formula
Answer:
The correct answer is: "People are rational".
Explanation:
Economics is the study of people's rational options when faced with scarcity and uncertainty, and that happens to all of us. The problem is that people are hardly rational, because our nature often acts against our economic interests.
Not long ago and until today, the work is done during the day, that is, Monday through Friday; A reality for most people. However, much of the economic activity, both ours and the entire world, operates 24/7. Today, millions of workers have unpredictable schedules. This is especially common in jobs related to services and retail sales. For example, many chain stores use personnel algorithms with traffic and apparently this makes sense, but shareholders always expect efficient efforts to maximize profits. If not, however difficult it is, particularly for workers, to get another job.
I think the answer is B because that doesn't seem very desirable
<span>If these are the missing choices:
</span>A : the Securities and Exchange Commission, income principle
<span>B : GAAP, revenue recognition principle
C : GAAP, expense recognition principle
D : the IRS, tax principle </span><span>
My answer is: </span><span>B : GAAP, revenue recognition principle
</span><span>
The cash-basis is not in accordance with GAAP, and mahogany is in violation of the REVENUE RECOGNITION PRINCIPLE.
GAAP refers to Generally Accepted Accounting Principle.
It is stated that income must be recognized when it is earned not when cash is received. Because the company is using cash-basis, they will only report income earned on July 12 when they received the money not when they earned it which is before their fiscal year ending June 30.
They should recognized receivables from customers before closing the books for the fiscal year. </span>
Answer and Explanation:
The computation is shown below;
The net profit margin is
= Net income ÷ sales revenue
= $184,000 ÷ $574,000
= 32%
The asset turnover is
= Sales revenue ÷ average of assets
= $574,000 ÷ ($2,142,000 + $1,998,000) ÷ 2
= $574,000 ÷ $2,070,000
= 0.28 times
c. The return on assets is
= Net income ÷ average of assets
= $184,000 ÷ $2,070,000
= 0.089
= 8.89%
