Answer: over-borrowing.
Explanation:
credit cards function like this: you can "buy" a lot of things with it, including very very expensive things. this is because instead of really buying that product, you borrow money from the bank to buy it. you then have to pay it off in slower amounts of money over time until youve paid off the original cost of the product and more because the bank will most likely charge interest.
sounds great, right?
it is, until you cant afford to pay those smaller amounts of money. then, it starts to build up and if you still cant afford to pay the bank, they will begin to liquidize your physical assets (they take your stuff as payment, really anything, even your house can be taken.)
Answer:
C. Governments have a difficult time fine-tuning the economy by using fiscal policy because there are several time lags and these are often variable.
Explanation:
Fiscal policy includes two important tools, one is taxation and the other is government spending, the balance of which is essential for the sustainable economy, however the collection of expected tax and the nature of spending (also include the priorities) takes time and certain variable factors e.g. economic growth (GDP), employment, inflation, etc makes it difficult for the government to fine tune the economy.
Answer:
Retained earning balance at the end would be = $205,000
Explanation:
Retained earnings at the end = Retained earning at the beginning + Net income - Dividend paid
The net income would increase the balance of the retained earnings hence it is added to it.
The Dividend paid would be a cash outflow which would reduce the balance of the retained earnings, hence it is deducted from it.
So applying this to the question, we have
Retained earning balance at the end would be:
25,000 + 200,000 - 20,000 = $205,000
Retained earning balance at the end would be = $205,000
Answer:
14.58%
Explanation:
WACC = weight of equity x cost of equity + weight of debt x cost of debt x (1 - tax rate) + weight of preferred equity x dividend yield
According to the capital asset price model: Expected rate of return = risk free + beta x (market rate of return - risk free rate of return)
r= 3% + 1.1 x 8 = 11.8
equity = 0.4 x 11.8% = 4.72
d = 0.4 x 5 x (1 -0.21) = 1.58
p = 0.2 x 6 = 1.2
11.8 + 1.58 + 1.2 =
Answer:
A) The account receivables turnover is 15, and B) the number of days sales in receivables is 24.3 days.
Explanation:
A) FORMULA FOR ACCOUNT RECEIVABLES TURNOVER =
NET SALES / AVERAGE ACCOUNT RECEIVABLES
Given information -
Net sales = $1500,000
Average account receivables = $100,000
Putting the values in formula -
= $1500,000 / $100,000
= 15
B) FORMULA FOR NUMBER OF DAYS SALES IN RECEIVABLES =
365 / ACCOUNT RECEIVABLES TURNOVER
= 365 / 15
= 24.3 DAYS
