Answer:
Emergency fund.
Explanation:
Emergency funds are money that we keep on hand in case of unforeseen events. It may cover car repairs, unforeseen buying, medical bills and so on.
It is important to hold some emergency funds so as to avoid being stranded with no access touch needed resources.
Also emergency funds can be saved over time in case of job loss, having some back-up funds to use in the meantime will be a wise strategy.
Answer:
a. $0.30
Explanation:
Basic Earning Per Share (BEPS) = Earnings Attributable to Holders of Common Stock ÷ Weighted Average Number of Common Stock.
Earnings Attributable to Holders of Common Stock calculation :
Net income after tax for the period $160,000
Less Preference Dividend ($10,000)
Earnings Attributable to Holders of Common Stock $150,000
Weighted Average Number of Common Stock calculation :
Outstanding common shares 500,000
Therefore,
Basic Earning Per Share (BEPS) = $150,000 ÷ 500,000
= $0.30
Answer:
8.28 times
Explanation:
The number of times that Franklin Aerospace sell and replaces its inventory shall be determined through following mentioned formula:
Inventory turnover=sales/inventory balance
First we have to calculate the inventory balance which shall be determined as follows:
Quick ratio=current assets-inventory/current liabilities
2= $80,500-inventory/ $28,175
$56,350=$80,500-inventory
Inventory=$80,500-$56,350=$24,150
Now we will the number of times that Franklin Aerospace sell and replaces its inventory:
Inventory turnover=$200,000/$24,150=8.28 times
The answer is $230,000. For a manufacturing firm, cost of goods available for sale is computed by adding the beginning finished goods inventory to $230,000
Answer:
a. 9%
b. Yes, the firm earning an economic profit of 2%
c. Yes, Industry will see entry or exits
d. Rate of return of economy = 7%
Explanation:
a. Percentage rate of return = Earning ÷ Investment by founders × 100
= $18 ÷ $200 × 100
= 9%
b. Company rate of profit - Rate of profit of economy
= 9% - 7%
= 2% > 0
Yes, the firm earning an economic profit of 2%
c. Yes, Industry will see entry or exits because industry is competitive in nature and would to like to compete to others by satisfying the consumers . In perfect competitive markets there will be no entry or exits and critical characteristics reason companies are free for entry and exit for marginal profits.
d. Industry is competitive , there will be supplier to serve the market and its hard to decide the price of the product.
Hence, the rate of return long run equilibrium earned by firm = Rate of return of economy = 7%
