An activity that relates to the strategy of transferring risk

Your aunt is planning to invest in a bank CD that will pay 5.0 percent interest semiannually. If she has $6,000 to invest, how m

Tom [10]

Answer:

amount would get = $7310.41

Explanation:

given data

pay interest = 5 % = 0.05

invest = $6000

to find out

how much will she have at end of four years

solution

we get here Interest is compounded semi annually

Interest = $\frac{0.05}{2}$

Interest 0.025 = 2.5 %

so here we have 4 year so here 8 semi annual period

amount would get = invest × $(1+rate)^{time}$

amount would get = $6,000 × $(1+0.025)^{8}$

amount would get = $7310.41

8 0

3 years ago

Safefen, a safety assurance and standards association in the country of Eilenst, made it mandatory for all the toy manufacturers

Talja [164]

<h3>This scenario best illustrates the effect of the industry regulation component of on organizations by Safefen. </h3>

Explanation:

The element of industry regulation consists of laws and guidelines regulating the business practices and procedures of individual companies, firms, and professions.

Government regulation of the industry is control of individual or firm actions by local, federal or state governments via price-setting processes or control of the quantity, quality, and safety of products and services produced.

Displaying the recommended age limit for each toy on its cover is one of Safefen's safety measures of toy industry regulations.

4 0

3 years ago

Dolan Company's accounting records reflect the following inventories: Dec. 31, 2017 Dec. 31, 2016Raw materials inventory $300,00

Dafna11 [192]

Answer:

$700,000

Explanation:

The computation of the total raw materials used is shown below:

= Beginning raw material inventory + purchase of raw material - ending raw material inventory

= $250,000 + $750,000 - $300,000

= $700,000

We simply added the purchase and deduct the ending inventory to the beginning inventory so that the raw material used could come

7 0

4 years ago

Use the following information to answer this... Use the following information to answer this question. Windswept, Inc. 2010 Inco

prisoha [69]

Answer:

The Quick ratio: 0.86:1

Explanation:

The question is completed first as follows:

Windswept, Inc. 2009 and 2010 Balance Sheets ($ in millions) 2009 2010 2009 2010 Cash $ 270 $ 300 Accounts payable $ 1,530 $ 1,485 Accounts rec. 1,080 980 Long-term debt 1,140 1,340 Inventory 1,930 1,755 Common stock $ 3,420 $ 3,370 Total $ 3,280 $ 3,035 Retained earnings 680 930 Net fixed assets 3,490 4,090 Total assets $ 6,770 $ 7,125 Total liab. & equity $ 6,770 $ 7,125 What is the quick ratio for 2010?

Solution:

The requirement is to use the given information to calculate Windswept Inc's Quick ratio for 2010.

Quick ratio: this represents the ability of an organisation's short term liquidity to cover and cater for its short term obligation. Basically, it looks at the ratio of the current assets of an organisation (those that can be quickly converted to cash) to meet the current liabilities.

The formula for quick ratio= Current Assets - Inventory / Current Liabilities

Windswept's quick ration = Cash + Accounts receivable / Accounts Payable (all for 2010)

= $300 + 980 / $1, 485

= $1,280/$1,485

= 0.86:1

This means that the current asset of the company can only cover its current obligations up to about 86%. This is the quick ratio.

5 0

3 years ago

(a) Where the parent company does not hold 100 percent equity of the subsidiary company, what portion of the intra-group transac

emmainna [20.7K]

Answer:

Follows are the solution to this question:

Explanation:

In point a:

If the parent firm doesn't hold the conglomerate's equity stake, depreciation expense acknowledged by the parent company's owner and expenditures shall be removed throughout the consolidated statement of financial position. Its combined cash flow deletes debts previously recognized as assets for both the parent corporation and as debts for all the subsidiaries to offer a real and equal view. All the intragroup balance should be removed to avoid double-counting of financial assets resulting from payments in between the group's members.

In point b:

If a parent company has a stake in a subsidiary that is called noncontrolling interest over 50%, but less than 99 percent. Its parent company shall report a different non-controlling interest line on the income statement and revenue report to reveal its noncontrolling interest.

In point c:

Its Group of non - management Concerns may not claim responsibility mostly on a share of a benefit, doesn't have any influence from over parent's decision. Intra-group payments in a word-level shall be removed.

In point d:

Its NCI share of the opening in net assets of the subsidiary + NCI share of even an amortization fair value + NCI profits due to NCI - (dividend payable to the noncontrolling shareholder) = unlawful interest at the date of the merger is three steps for the calculation of total the uncontrol value.

7 0

3 years ago