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2 years ago

Why may Consumers overspend when using a credit card?

1 answer:

8 0

Because it is very easy to spend money that you do not have by using a credit card. Most think they can pay it off the following month, but that rarely happens.

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Rowdy's Restaurants cash flow ($ in millions)

wolverine [178]

Answer:

$460

Explanation:

Cash flow from operating activities involved all the cash flows related to the operations of the company like sales , purchases, receivable, payable etc.

Net Cash flow is the net of receipts and Payment.

Following are the operating cash flows.

Cash received from:

Customers $3,600

Cash inflow $3,600

Cash paid for:

Income tax $200

Purchase of inventory $2,200

Operating expenses $740

Cash outflow ($3,140)

Net Cash Flow $460 

All of the following cash flows relates to the Investing and Financing cash flows.

Cash Received

Interest on investments 320

Sale of land 220

Sale of Rowdy's capital stock 840

Issuance of debt securities 3,200

Payments

Interest on debt $ 420

Debt principal reduction 2,700

Purchase of equipment 6,400

Dividends on capital stock 560

6 0

2 years ago

Read 2 more answers

A 13-year bond of a firm in severe financial distress has a coupon rate of 10% and sells for $930. The firm is currently renegot

adoni [48]

Answer:

Stated yield is 11.04%

expected yield is 5.78%

Explanation:

The expected yield to maturity can be computed using the rate formula in excel which is given below:

=rate(nper,pmt,-pv,fv)

nper is the number of coupon interest the bond would pay which is 13

pmt is the amount of coupon interest the bond pays which is $1000*10%=$100

pv is the current price of the bond which is $930

fv is the face value of $1000

=rate(13,100,-930,1000)=11.04%

However the expected yield has the coupon interest reduced to one -half as calculated below:

=rate(13,100*0.5,-930,1000)=5.78%

3 0

3 years ago

Having a good credit score is important because

alex41 [277]

It can impact your ability to be approved for bank loans.

7 0

3 years ago

Read 2 more answers

Loretta Bolero wants to run for office but cannot devote more than two years to the job. What office do you suggest that Loretta

MAVERICK [17]

A vacant senant seat so A

7 0

3 years ago

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Zanda Corp. and Jones Corp. are identical in every way (products produced, costs, demand, etc.) except for one. Zanda uses a lev

Natali [406]

Answer: (C) Zanda will have higher inventory carrying costs.

Explanation:

The inventory carrying cost is one of the type of overall holding inventory cost that helps in identifying the various types of business expenses and also storing the various types of unsold goods and the services in the market.

The inventory carrying cost is also known as the holding cost and it is basically responsible for handling the cost system by using the estimated formula.

According to the given question, Zanda corporation is basically using the level production plan for the purpose identifying their business factors such as costs, demand and the products.

So, based on the given information is Zanda will have the high inventory carrying cost statement is true. Therefore, Option (C) is correct answer.

3 0

3 years ago