1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Nady [450]
3 years ago
9

Marigold Corp. self-insures its property for fire and storm damage. If the company were to obtain insurance on the property, it

would cost them $1920000 per year. The company estimates that on average it will incur losses of $1610000 per year. During 2021, $710000 worth of losses were sustained. How much total expense and/or loss should be recognized by Marigold Corp. for 2021?
Business
1 answer:
DENIUS [597]3 years ago
8 0

Answer:

loss on fire and storms 710,000

insurance expense zero as the firm didn't acquire any

Explanation:

Notice it state <u><em>"if the company were to obtain insurance"</em></u> Which means it currently has none insurance.

If the firm had an insurance the amount of losses would be deducted from the insurance policy but there is none so we disclosure the entire loss as a result of the period.

Hence, we should recognize the entire loss on fire and storm damage of 710,000 during the year and no insurance expense.

You might be interested in
Retailing is composed of all of the business activities that add value to the products and services customers buy. This includes
ivolga24 [154]

Answer: Finance, purchasing, accounting, suppying

Explanation:

Retailing is known as a sub middleman in business that buys from the wholesaler and sells to the consumer in smaller quantity not as big as the wholesaler.

The following are activities of the retailer, although it might not be all followed by many retailers but depending on their ability and understanding

-Finance

-Purchasing

-Accounting

-Management Information System

-Supply management including warehouse and distribution management.

3 0
3 years ago
An efficient market reflectsA) only historical information.B) only the information related to events that have already occurred.
Masja [62]

Answer:

The correct answer is option D.

Explanation:

The efficient market hypothesis is a theory in modern financial economics which states that the share prices reflect all available information and alpha generation is impossible. Neither fundamental nor technical analysis can give excess returns which are also risk-free.

Share prices in an efficient market reflect all the information, both public and private. This information includes future predictions. All this information is widely available to all the investors and they correctly interpret this information and quickly adjust to it.

4 0
4 years ago
The management of Metro Printers is considering a proposal to replace some existing equip- ment with a new highly efficient lase
Veseljchak [2.6K]

Answer:

Net present value of proposal $168,166

Explanation:

Check attachment

3 0
3 years ago
You’ve observed the following returns on Crash-n-Burn Computer’s stock over the past five years: 16 percent, –5 percent, 19 perc
Kaylis [27]

Answer:

(A) 8.22%

(B) 7.5%

Explanation:

The first step is to calculate the average nominal return

Average nominal return= R1 + R2 + R3 + R4 + R5/5

= 16 +(-5) + 19 + 13 + 10/5

= 16-5+19+13+10/5

= 53/5

= 10.6%

(A) The average real return can be calculated as follows

= (1 + average nominal return)/(1+ inflation) -1

= (1+ 10.6/100)/(1+2.2/100) -1

= (1+0.106)/(1+0.022)-1

= 1.106/1.022-1

= 1.08219-1

= 0.08219 × 100

= 8.22%

(B) The average nominal risk premium can be calculated as follows

Average risk free rate= Nominal average t-Bill rate-inflation

= 5.3% - 2.2%

= 3.10%

Average nominal risk premium= average nominal return -average risk free rate

= 10.6% - 3.10%

= 7.5%

5 0
3 years ago
You want to be able to withdraw the specified amount periodically from a payout annuity with the given terms. Find how much the
SpyIntel [72]

The question is incomplete. The complete question is :

You want to be able to withdraw the specified amount periodically from a payout annuity with the given terms. Find how much the account needs to hold to make this possible. Round your answer to the nearest dollar.

Regular withdrawal    $ 2200

Interest rate                        2%

Frequency                   Monthly

Time                                20 years

Solution :

Given :

Monthly withdrawal = $ 2200

Interest rate = 2%

Frequency = monthly

Time = 20 years

        = 20 x 12 = 240 months

Formula used :

$w=\frac{[PZ^{r-1}(Z-1)]}{[Z^Y-1]}$         with Z = 1 + r

where, w = monthly withdrawal

P = principal amount

r = monthly interest rate

Y = Number of months

So, w = 2200

     r = 2% = 0.02

     Z = 1 + r

        = 1 + 0.02 = 1.02

Y = 240

Therefore,

$2200=\frac{P(1.02)^{240-1}(1.02-1)}{(1.02)^{240-1}(1.02-1)}$

$P=\frac{2200(115.888-1)}{113.6164(0.02)}$

   = 111,231829

   ≈ 111,232 (rounding off)

Thus, the account balance = $ 111,232

3 0
3 years ago
Other questions:
  • Where in the loudcloud classroom can students discuss topics that are unrelated to a course?
    11·2 answers
  • Stockholders in a corporation entrust control over the company's daily operations to managers selected by the board of directors
    15·1 answer
  • Gemstone designs and creates luxury items like jewelry and hair accessories. It sells its merchandise only through Francone's, a
    14·1 answer
  • Organizational culture consists of three levels: Select one: a. assumptions, orientations, and beliefs. b. beliefs, values, and
    7·1 answer
  • It is possible that a(n) ________ vertical marketing system can be more formally structured through strategic alliances and part
    9·1 answer
  • The following information pertains to the three divisions of Merrymount Company: Division X Division Y Division Z Sales ? ? 1,25
    12·1 answer
  • Fill in the blanks with the category of the expanded accounting equation (assets, liabilities, stockholders' equity, dividends,
    13·1 answer
  • Match the jobs with the education requirements.
    12·1 answer
  • Trina wants to start a company that makes clothing. She has a lot of ideas, but she doesn’t have any sewing machines to use to m
    12·1 answer
  • It is critical for body cells to maintain fluid and electrolyte balance. The body achieves this balance by?
    13·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!