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3 years ago

What type of budget is used to forecast income and expense for ongoing business operations?

Business

1 answer:

Kruka [31]3 years ago

4 0

Answer:

The correct answer is: Operating budget.

Explanation:

An operating budget is an estimate a business make of the expenses and revenue it plans to book in its ongoing operations. Operating budgets can also be used to forecast future operating corporate periods. This type of budget mainly includes the number of sales expected in dollars, fixed and variable costs as well as operating expenses such as loan payments or depreciation.

You might be interested in

Which of the following is an common factor of failure for small businesses

Alex777 [14]

A few of the following can be considered major factors in failure of small businesses:

-Lack of financial planning: when a business is born it needs to critically plan out the first few years of running. Small business often fail to plan out for the future and have less working capital at hand.

-Lack of expertise: small business cannot afford specialist managers and this may be a reason for failure

-no investment in marketing and research can also be a reason.

6 0

3 years ago

A 30-year maturity bond has a 6.7% coupon rate, paid annually. It sells today for $881.17. A 20-year maturity bond has a 6.2% co

geniusboy [140]

Answer:

Rate of return

30 year bond = 42%

20 year bond = 45%

Explanation:

First of all find current yield on 30 year maturity bond

We will use PV of annuity formula to calculate current YTM

Coupon Payment = 6.7% x 1000 = $67

$881.17 =( $67( 1- ( 1 + r )^-30 ) / r ) + ( 1000 / ( 1 + r )^30 )

r = 0.0773 = 7.73%

Current YTM is 7.73%

Now calculate the current yield for 20 years maturity bond

Coupon Payment = 6.2% x 1000 = $62

893.1 = ( ( $62 x ( 1 - ( 1 + r )^-20 ) / r ) + ( 1000 / ( 1 + r )^20 )

r = 0.0723 = 7.23%

As given

5 years from now the YTM on 30 Year bond will be 7.70% and on 20 Year bond will be 7.20%.

Now calculate

Price of the 30 year bond Bond after 5 year at YTM of 7.7%

Price of the Bond = ( $67 x ( 1 - ( 1 + 0.077 )^-(30-5) ) / 0.077 )+( 1000 / ( 1 + 0.077 )^(30-5) ) = $890.46

Price of the 20 year bond Bond after 5 year at YTM of 7.2%

Price of the Bond = ((6.7%*1000)*(1-(1+0.072)^-15)/0.072)+(1000/(1+0.072)^15)

( $62 x ( 1 - ( 1 + 0.072 )^-(20-5) ) / 0.072 )+( 1000 / ( 1 + 0.072 )^(20-5) ) = $910.06

Increase in price of 30 year bond = $890.46 - $881.17 = $9.29

Increase in price of 30 year bond = $910.06 - $893.1 = $16.96

Future value of Coupon payment for 5 years

30 year bond = 67 x ( 1.072^5 -1 ) / 0.072 = $386.84

20 year bond = 62 x ( 1.072^5 -1 ) / 0.072 = $357.97

Total return = FV of Coupon payment + Price increase

30 year bond = $386.84 + $9.29 = $396.13

20 year bond = $357.97 + $16.96 = $374.93

Rate of return =

30 year bond = $396.13 / $881.17 = 0.45 = 45%

20 year bond = $374.93 / $893.1 = 0.42 = 42%

5 0

3 years ago

Joanie is in her junior year of high school and is planning her future. Based on rent in her city and her new car payment, she n

Simora [160]

She needs a bachelor degree because an associate degree doesn't give her quite $800.

5 0

3 years ago

Which of the following is not a supervised learning technique in predictive analytics?

anygoal [31]

Answer:

Factor analysis

Explanation:

The factor analysis refers to the analysis in which the data of many variables is to be segregated into a few variables which become easily understandable and manageable

But in the given case it asked for the term that is not a supervised learning technique so as per the given options the linear regression, decision tree, neural networks are included

So the correct option is Factor analysis

3 0

3 years ago

Opponents of tax reforms intended to raise saving argue that such reforms a. favor those with high income, and that saving may n

Dafna11 [192]

Answer:

Option B

Explanation:

In simple words, under such tax reforms the government is intending to raise indirect taxes which will lead to higher prices of certain goods and is also declining taxes on savings. Both of these steps will work as an incentive for individuals to save more.

However a big majority of community is stating that this will only lead to more burden on the weaker section due to higher prices of commodities and will eventually result in lower standard of living for certain individuals.

5 0

3 years ago