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Natali5045456 [20]
4 years ago
8

In projecting operating expenses for the second and third year costs like ________ are likely to remain stable unless new equipm

ent or additional space is purchased.
Business
1 answer:
almond37 [142]4 years ago
8 0

Answer:

Insurance cost

Explanation:

There are various costs that incur in projecting operating expenses. Insurance cost is usually paid at the start of the project normally in the first year. Insurance cost is not likely to incur in the second and third year if the situation of assess such as equipment remains the same. If the new equipment is purchases by the company in the second or third year only then insurance cost will incur.

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Cash $ 14,000 Accounts payable $ 42,000 Receivables 70,000 Other current liabilities 28,000 Inventories 210,000 Total CL $ 70,00
Tcecarenko [31]

Answer:

The ROE will increase by 7.69% to 14.29% from 7.5%

Explanation:

Current liabilities:

account payable 42,000

Other  28,000

Total Liabilities: 70,000

IF we want a current ratio of 2.3 then:

70,000 x 2.3 = 161,000 Current assets are needed.

Right now, the companny has 294,000 current assets so it will make inventories decrease by:

294,000 - 161,000 = 133,000

Then with that will purchase common stock:

280,000 - 133,000 = 147,000 common stock will be outstanding

The Return on equity will be:

21,000 / 147,000 = 0.142857 = 14.29%

While currently the ROE is:

21,000/280,000 = 0.075 = 7.5%

There will be an increase for: 14.29 - 7.5 =  6.79%

3 0
3 years ago
TREMAINE:
WITCHER [35]

The amount of money he will save by paying an extra $15,000 upfront is $11,974.80.

Loan = Cost - Down payment

Loan = $145,000 - $15,000

Loan = $130,000

<u>Given Information</u>

P/Y= 12, C/Y=12

N= 30*12= 360

I/Y = 4.38

PV= -130,000

Monthly payment = PMT(C/Y, N, I/Y, -PV)

Monthly payment = $649.45

Total interest over the whole term = Monthly payments * Number of payments - Loan

Total interest over the whole term = $649.45*360 - $130000

Total interest over the whole term = $103,802

 

If waited to have down payment of $30,000: The Loan= $145,000 - $30,000 = $115,000

<u>Given information</u>

N= 30*12= 360

I/Y = 4.38

PV= -115,000

Monthly payment = PMT (N, I/Y, -PV)

Monthly payment = $574.51

Total interest over the course of the mortgage = $574.52*360 - $115,000

Total interest over the course of the mortgage = $91,827.20

Money saved by paying extra $15,000 upfront = $103,802 - $91,827.20

Money saved by paying extra $15,000 upfront = $11,974.80

Therefore, the amount of money he will save by paying an extra $15,000 upfront is $11,974.80.

Learn more about fixed mortgage:

<em>brainly.com/question/2501237</em>

5 0
2 years ago
Read 2 more answers
Fact Pattern: Management discovers that a supervisor at one of its restaurant locations removes excess cash and resets sales tot
sasho [114]

Answer: <u><em>The accounting for customer food checks by the supervisor. </em></u>

An unfitting classification of responsibilities existed because the supervisor was accountable for accounting for customer food checks and depositing acknowledgment and had the quality to set POS totals .

<u><em>Therefore, the correct option is (a)</em></u>

3 0
3 years ago
a. Perform a Du Pont analysis on Green Valley. Assume that the industry average ratios are as follows: Total margin 3.5% Total a
Naya [18.7K]

Answer: A total margin of 3.5 percent indicates that the net income over revenue is 3.5 percent of the revenue. Asset turnover of 1.5 percent suggests that total revenue is 1.5 times the book value of the assets of the company. An equity multiplier of 2.5 suggests that the assets of the company are 2.5 times the equity which means that the company has a capital structure of 60 percent debt and 40 percent equity. A ROE or return on equity of 13.1 percent tells us that the company earns a 13.1 percent return on the money invested in it by the its owners or investors in its equity.

A return on asset ratio is calculated by multiplying the Total margin by the total asset turnover. (1.5*3.5) = 5.25%. This ratio tells us that the net income divided by the book value of assets is 5.25 percent of the book value of assets.

Current ratio is calculated by dividing the current assets of a company by the current liabilities of a company. A current ratio of 2.0 suggests that the company has twice the amount of current assets than its current liabilities.

Days Cash on hand is calculated by dividing a companies unrestricted cash and cash equivalents by the company's daily average cost of operations excluding depreciation. A 22 days cash on hand tells us that the company has unrestricted cash to bear the operational expenses of the company for 22 days.

Average collection period is the average number of days it takes a company to collect payment after making a credit sales. A 19 days period means that the company on average takes 19 days to collect payment after a credit sale has been made.

A debt ratio is the ratio of company's total debt and total assets.It is calculated by dividing the  company's  total debt by its total assets.

A 71 percent debt ratio indicates that the firms out of all the company's assets 71 percent are financed by debt and 29 percent by equity, which is also its capital structure.

Debt to equity ratio of 2.5 indicates that the total debt of a company is 2.5 times the total equity, it indicates that for $1 of equity in the company there is debt of $2.5. It is calculated by dividing total debt by total equity.

Times interest earned is calculated by dividing the net income of a company by its finance costs, or interest payments of the year.

This measures how much more is the company is earning relative to its interest payments. A ratio of 2.6 indicates that the company's net income is 2.6 times its interest expense.

Fixed asset turnover ratio of 1.4 indicates that the company makes 1.4 times the revenue of its fixed assets. IT is calculated by dividing total revenue by average fixed assets.

Explanation:

5 0
3 years ago
To bridge the gap between a database and the Internet, it is necessary to use _____, which is software that integrates different
denis-greek [22]

Answer:

The correct answer is middleware.

Explanation:

The term middleware refers to a software system that offers common services and functions for applications. In general, middleware is responsible for data management, application services, messaging, authentication and API management.

Help developers design applications more efficiently. In addition, it acts as a guiding thread between applications, data and users.

In the case of companies with container and multicloud environments, middleware can make profitable the development and execution of applications at scale.

7 0
3 years ago
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