Answer:if the debt ratio is lower,the loan request should be granted but if it is higher the loan request should not be granted by the bank.
Explanation:
Debt ratio is a financial ratio which shows the ability of a firm to pay their debt as they fall due.lenders are more concerned with the liquidity position of a firm in order to guarantee the solvency of the firm whenever a loan is granted to such a firm. The debt ratio is used to know the financial leverage of a firm and the financial risk involved in lending to such firm. When a firm is said to be highly leverage it means that such a firm will find it difficult to pay their debt as they fall due because the liabilities in their balance sheet is more than their assets. Debt ratio is calculated as
Total Liabilities/ Total Assets
The Debt ratio is calculated from the Liabilities and Asset figures obtained from their balance sheet. When it is calculated, lower ratio is more preferable than higher rato because it means that a firm will find it easy to settle their debt to their lenders as that debt fall due.but a higher ratio is an indication that such firm will not be able to meet their debt obligation to their lenders as they fall due. Therefore, when a firm has a higher debt ratio it is not advisable to grant a loan to such a firm by the bank. As regard the loan request of Creek Enterprises from Springfield bank, if the debt ratio of Creek Enterprises is lower, the loan should be granted but if it is higher the bank should not grant the loan.
The agricultural worker that cuts down trees with chain-saws is a lumberjack.
Answer:
Redlining
Explanation:
Redlining stems from discrimination that consists denial of services, maybe financial based on the group one may fall under such as race, ethnicity or location. The Holden act(1977) is a real estate act of California meant to protect individuals from discriminations such as ones that involve denial of mortgage loan on the basis of something other than the credit worthiness of the individual . These discriminations could take the form of mortgage loan and, insurance loan denials or other financial services based on creditworthiness history of the group the person may fall under and not necessarily the individual's qualifications on his own
Answer:
Estimated manufacturing overhead rate= $0.2 per direct labor dollar
Explanation:
Giving the following information:
Direct labor, $30,000
Factory overhead applied $6,000.
<u>To calculate the predetermined overhead rate, we need to use the following formula:</u>
Allocated MOH= Estimated manufacturing overhead rate* Actual amount of allocation base
6,000= Estimated manufacturing overhead rate*30,000
6,000 / 30,000 = Estimated manufacturing overhead rate
Estimated manufacturing overhead rate= $0.2 per direct labor dollar
