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3 years ago

The process of asset transformation refers to the conversion of:_______

Business

1 answer:

kondaur [170]3 years ago

6 0

Answer: c. Risky assets into safer assets

Explanation:

The process of asset transformation refers to the conversion of risky assets into safer assets. Asset transformationa is simply a form of transformation in which financial institutions like banks use deposits in the generation of revenue through the pooling deposits in order to make loans. It has to do with transforming bank liabilities into bank assets.

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At carbon fine inc., a maker of premium art pencils, the human resource department is evaluating its pay structure. a compensati

eduard

Compa-ratio, short for comparitive ratio, is a formula used to determine competitiveness of an employees pay. A compa-ratio of 1.00 would mean the employee is making exactly the market average.
With a ratio of 1.9, this means the designers are making twice the industry average for their job. The biggest problem this could cause would be labor costs being to much. If the company is paying 2x the market rate for their designers, they aren't staying competitive.

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3 years ago

When there is an expansionary gap, inflation will ______, in response to which the Federal Reserve will ____ real interest rates

dalvyx [7]

Answer: increase; raise; decline

Explanation:

An expansionary gap occurs in an economy when the potential output in the economy is less than the actual output.

It should be noted that when there is an expansionary gap, this will lead to a rise in inflation. Since inflation has risen, the government will also increase the real interest rates which will in turn, lead to the reduction in output.

7 0

3 years ago

Simon Company's year-end balance sheets follow. At December 31 Current Yr 1 Yr Ago 2 Yrs Ago Assets Cash $ 33,817 $ 40,739 $ 42,

SOVA2 [1]

Answer:

Simon Company's

Balance Sheets at December 31L

Current Yr % 1 Yr Ago % 2 Yrs Ago %

Assets

Cash $ 33,817 6 $ 40,739 8 $ 42,420 10

Accounts receivable, net 100,012 17 69,175 14 53,814 13 Merchandise inventory 128,260 22 91,410 18 59,663 14

Prepaid expenses 11,001 2 10,482 2 4,576 1

Plant assets, net 311,773 53 292,386 57 255,527 61

Total assets $ 584,863 100 $ 504,192 100 $ 416,000 100

Liabilities and Equity

Accounts payable $ 141,262 24 $ 85,208 17 $ 56,010 13

Long-term notes payable 108,855 19 118,283 23 91,936 22 Common stock,

$10 par value 163,500 28 163,500 32 163,500 39 Retained earnings 171,246 29 137,201 27 104,554 25

Total liabilities & equity$ 584,863 100 $ 504,192 100 $ 416,000 100

2. Assuming annual sales have not changed in the last three years, the change in accounts receivable as a percentage of total assets is favorable. It is always better to maintain low accounts receivable, thereby reducing credit risk exposures.

3. Assuming annual sales have not changed in the last three years, the change in merchandise inventory as a percentage of total assets is favorable. Less inventory means that working capital is not being tied down to inventory.

Explanation:

Common-size percentages are used in analyzing the balance sheet. The calculations set each line item as a percent of the total assets.

7 0

3 years ago

Sharon would make an adjustment entry to __________ to record the $500 her company received from a customer to perform future se

makkiz [27]

Answer:

the ending balance of the unearned revenue is $3,225

Explanation:

The computation of the ending balance is shown below:

= Amount received from the customer for performing the future service + balance in the account

= $500 + $2,725

= $3,225

Therefore the ending balance of the unearned revenue is $3,225

The above formula should be applied

5 0

3 years ago

You are the owner of a smoothie shop in California. Afterhearing a podcast about customer relationship management (CRM), youdeci

Svetach [21]

Answer:

Average Customer Retention rate = 80%

Average Value of Sales per year per customer = $120

Average customer acquisition cost = Customer acquisition oriented market expenses per month/

number of new customers acquired per month

$=\frac{1000}{25} = 40$

Average customer retention cost = $75

CLV =[1/(1- Average customer retention rate)] x (average value of sales per year per customer)-(average customer acquisition cost + average customer retention cost)

$= [1/(1-0.8)] x 120-(40+75)$

=$485

A) Average customer retention rate =90%

B) Average value of sales per year per customer = $125

C) Average customer acquisition cost =$60

D) Average customer retention cost =$100

CLV = [1/(1- Average customer retention rate)] x (average value of sales per year per customer)-(average customer acquisition cost + average customer retention cost)

$= [1/(1-0.9)] x 125 - (60+100)$

E) Customer Lifetime Value = 1090

Explanation:

Here are the spreadsheets.

3 0

3 years ago