Disadvantages of company borrow to much money from the bank

Billy Thornton borrowed $140,000 at a rate of 7.25%, simple interest, with interest paid at the end of each month. The bank uses

kolbaska11 [484]

Answer:

$845.83

Explanation:

The computation of the interest is shown below:

= Principal × rate of interest × number of days ÷ (total number of days in a year)

= $140,000 × 7.25% × (30 days ÷ 360 days)

= $845.83

Simply we applied the simple interest formula by multiplying the principal, interest rate and the time period so that it can arrive with the correct amount

3 0

3 years ago

The Chandler Group wants to set up a private cemetery business. According to the CFO, Barry M. Deep, business is "looking up". A

Tems11 [23]

Answer: 6.49%

Explanation:

The constant rate of growth where the company would break even will be calculated thus:

Initial investment = Net cash inflow / (14% - g)

759000 = 57,000/(0.14 - g)

where g = growth rate

759000 = 57,000/(0.14 - g)

Cross multiply

759000(0.14 - g) = 57000

106260 - 759000g = 57000

759000g = 106260 - 57000

759000g = 49260

g = 49260/759000.

g = 0.0649

g = 6.49%

6 0

2 years ago

The Conways received close to $40 million from the sale. However, shortly after the sale, the Conways regretted signing the non-

Lyrx [107]

Answer:

Incorrect

Explanation:

The Bard company has paid millions of dollar of consideration and requires that the Philip Conway Inc. would transfer the ownership of the RM Corporation to Bard. The court dismissed the case and said that the subsidiary is the property of Bard now because their was a flow of consideration from the part of Bard.

6 0

3 years ago

Budget Performance Reports for Cost Centers Partially completed budget performance reports for Delmar Company, a manufacturer of

julia-pushkina [17]

Answer:

Delmar Company

Budget Performance Report—Vice President, Production

For the Month Ended June 30

Plant Actual Budget Over Budget (Under) Budget

Eastern Region $4,200,000 $4,250,000 $(50,000)

Central Region 6,175,000 6,200,000 (25,000)

Western Region 8,515,000 8,200,000 $375,000

$18,890,000 $18,650,000 $375,000 $(75,000)

Delmar Company

Budget Performance Report—Manager, Western Region Plant

For the Month Ended June 30

Department Actual Budget Over Budget (Under) Budget

Chip Fabrication $4,300,000 $4,000,000 $300,000

Electronic Assembly 2,575,000 2,500,000 75,000

Final Assembly 1,640,000 1,700,000 $(60,000)

$8,515,000 $8,200,000 $375,000 $(60,000)

b. Memo to Randi Wilkes, Vice President

To: Vice President, Production

From: FC

Subject: Budget Performance Report—For the Month Ended June 30

Date: July 3, 2021

The above-mentioned subject refers.

The production division incurred $315,000 more costs than budgeted. The extra costs are reflected in the increasing cost of producing light duty motors in the Western Region. The overall increase is caused by the regional differences in Chip fabrication and Electronic Assembly.

There is a need to review production activities with these two production processes with a view to reducing costs.

Regards,

Explanation:

a) Data and Calculations:

Delmar Company

Budget Performance Report—Vice President, Production

For the Month Ended June 30

Plant Actual Budget Over Budget (Under) Budget

Eastern Region $4,200,000 $4,250,000 $(50,000)

Central Region 6,175,000 6,200,000 (25,000)

Western Region (g) (h) $(i)

$(j) $(k) $(l) $(75,000)

Delmar Company

Budget Performance Report—Manager, Western Region Plant

For the Month Ended June 30

Department Actual Budget Over Budget (Under) Budget

Chip Fabrication $(a) $(b) $(c)

Electronic Assembly 2,575,000 2,500,000 75,000

Final Assembly 1,640,000 1,700,000 $(60,000)

$(d) $(e) $(f) $(60,000)

Delmar Company

Budget Performance Report—Supervisor, Chip Fabrication

For the Month Ended June 30

Cost Actual Budget Over Budget (Under) Budget

Factory wages $1,450,000 $1,200,000 $250,000

Materials 1,575,000 1,600,000 $(25,000)

Power and light 945,000 900,000 45,000

Maintenance 330,000 300,000 30,000

$4,300,000 $4,000,000 $325,000 $(25,000)

a. = $4,300,000

b. = $4,000,000

c. = $300,000 ($325,000 - $25,000)

d. = $8,515,000 ($4,300,000 + 2,575,000 + 1,640,000)

e. = $8,200,000 ($4,000,000 + 2,500,000 + 1,700,000)

f. = $375,000 ($300,000 + 75,000)

g. = $8,515,000

h. = $8,200,000

i. = $375,000

j. = $18,890,000 ($4,200,000 + 6,175,000 + 8,515,000)

k. = $18,650,000 ($4,250,000 + 6,200,000 + 8,200,000)

l. = $375,000

8 0

2 years ago

Choose the best word or phrase from each drop-down menu. the federal reserve increases the money supply when it is trying to enc

Pie

Because raising the money supply boosts the economy, the optimal sentence from the drop-down box is (i) or (a).

<h3>What happens when federal reserves increase?</h3>

Increasing the money supply has a number of consequences which are:

To boost the economy, the Federal government expands the money supply.

Customers use credit because interest rates are lower when the money supply is high.

The unemployment rate is reduced when the money supply is increased.

When the money supply is increased, the economy generally grows because people have more money to spend.

As the amount of money available increases, loans will become more affordable, encouraging people to take out loans knowing that they will just have to pay lesser interest rates.

To learn more about money supply, refer below

brainly.com/question/13399132

4 0

2 years ago

Read 2 more answers