All categories

2 years ago

When looking for capital, bankers and other lenders will usually feel most comfortable investing in a/an

1 answer:

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Existing business with a proven record. When you ask for investments, the lending institution will most definitely ask for your financial track record. They would want to know if you are a good paymaster because they will need the assurance that you can pay them back. Even if you have a really original idea and want to start a new business, there will still be some reservation if you have no track record because the lenders do not know if you are trustworthy or not. Unlike if you already have a proven record that you are a good paymaster, then you at least have proof that you can pay back.

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1. The two primary goals of the progressive movement, as a whole, were to a. restore business competition and stimulate entrepre

Vinil7 [7]

Answer:

improve the quality of urban life and help immigrants adjust to American life.

Explanation:

The progressive movement was a period when the was social activism and political reforms accross America. It occurred between the 1820s to the 1920s.

Mainly the movement was aimed at resolving problems of industrialisation, urbanisation, immigration, and corruption.

This was the basis for direct democracy, and also they requested for regulation of monopolies through anti trust laws that promotes equality in competition.

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2 years ago

Imagine that you own a property that is exactly 2.2 acres large. You want to sell your property, but your realtor tells you that

BlackZzzverrR [31]

Answer:

8,000 m²

Explanation:

you must first change the size of your lot from acres to square miles = 2.2 acres / 640 acres per square miles = 0.0034375 square miles

now we can convert to square kilometers = 0.0034375 miles x 2.56 square kilometers per square miles 0.0055 square kilometers

there are 1,000,000 m²´per km², so you have 0.0088 km² x 1,000,000 = 8,800 m²

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2 years ago

You are the manager of a project that has an operating leverage rating of 2.8 and a required return of 14 percent. Due to the cu

slava [35]

Answer:

The change should you expect in operating cash flows next year would be 19.60%

Explanation:

In order to calculate the change should you expect in operating cash flows next year given your sales forecast we would have to make the following calculation:

change should you expect in operating cash flows=operating leverage rating*percentage of decrease sales next year

change should you expect in operating cash flows=2.8*0.07

change should you expect in operating cash flows=19.60%

The change should you expect in operating cash flows next year would be 19.60%

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3 years ago

You are attending college in the fall and you need to purchase a computer. You must finance the purchase because your parents wi

rodikova [14]

The correct answer is installment credit. The explanation is below.

Installment credit allows you to purchase an item and then pay for it in installments. The reason that this would be the best option for you is that you do not have the money now to make the purchase, but you are able to make smaller monthly payments in order to purchase a computer.

Installment credit is better than revolving credit for new borrowers. Revolving credit would allow you to charge additional purchases on your revolving credit account. The installment plan only finances one item, rather than like a credit card, which is how revolving credit works. You would not choose non-installment credit because this would require you to make this payment all at once in a short period of time. It would not allow you to spread the payments out over time.

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3 years ago

The most recent data from the annual balance sheets of Free Spirit Industries Corporation and LeBron Sports Equipment Corporatio

shutvik [7]

Answer:

Free Spirit Industries Corporation and LeBron Sports Equipment Corporation

1a. Free Spirit Industries Corporation’s current ratio is , and its quick ratio is 1.3337 : 1 and 0.7469 : 1 respectively.

1b. LeBron Sports Equipment Corporation’s current ratio is , and its quick ratio is 1.6596 : 1 and 0.9294 : 1 respectively.

2. True: Free Spirit Industries Corporation has less liquidity but also a greater reliance on outside cash flow to finance its short-term obligations than LeBron Sports Equipment Corporation.

3. True: A current ratio of 1 indicates that the book value of the company’s current assets is equal to the book value of its current liabilities.

4. True: An increase in the current ratio over time always means that the company’s liquidity position is improving.

Explanation:

a) Data:

Balance Sheet December 31st (Millions of dollars)

LeBron Sports Equipment Corporation Free Spirit Industries Corporation

LeBron Free Spirit LeBron Free Spirit

Assets Liabilities

Current assets Current liabilities

Cash $1,435 $922 Accounts payable $0 $0

Accounts receivable 525 338 Accruals 316 0

Inventories 1,540 990 Notes payable 1,793 1,687

Total current assets $3,500 $2,250 Total current liabilities $2,109$1,687

Net fixed assets Long-term bond 2,578 2,063

Net plant & equipment 2,750 2,750 Total debt $4,687 $3,750

Common equity

Common stock $1,016 $813

Retained earnings 547 437

Total common equity $1,563 $1,250

Total assets $6,250 $5,000 Total liabilities and equity$6,250 $5,000

b) Current Ratio and Quick Ratio:

Current Ratio = Current Assets/Current Liabilities

Quick Ratio = (Current Assets - Inventory)/Current Liabilities

1a. Free Spirit Industries Corporation’s current ratio is , and its quick ratio is

Current Ratio = $2,250 / $1,687 = 1.3337 : 1

Quick Ratio = ($2,250 - 990) / $1,687 = 0.7469 : 1

1b. LeBron Sports Equipment Corporation’s current ratio is , and its quick ratio is:

Current Ratio = $3,500 / $2,109 = 1.6596 : 1

Quick Ratio = $3,500 -1,540 / $2,109 = 0.9294 : 1

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2 years ago