Answer: a. 80% stocks, 20% bonds
Explanation:
Stocks are a better fit for young people for 2 reasons;
1. Younger people are usually more risk tolerant. This means that they can pick financial vehicles that are more reflective of this risk taking mentality such as Stocks.
2. As they are far from retirement, their main goal should be saving for retirement. Stocks offer a better chance as Capital Appreciation so that their investments will grow before they retire leaving them in a better position when they do.
Fixed income is more for the older generation so that they may be sure of stable income while they are in retirement.
At the same time, every portfolio should be diversified to avoid risk so 20% going to bonds is ideal.
Answer:
$505
Explanation:
Armstrong Company
Cash flow from operating activities
Adjustments to reconcile net income to operating cash flow.
Net income
$450
Less : Increase in plant and equipment
($170)
Add : Depreciation expenses
$80
Add : Payment of dividends
$10
Add : Decrease in accounts receivable
$20
Add : Increase in long term debt
$100
Less : Increase in Inventories
($15)
Add : Decrease in Account payable $30
Net Cash flow from operating activities
$505
Answer:
A measurable plan is a plan that can be effectively quantified to justify it's qualities.
Explanation:
A financial plan can be defined as a set of guidelines that act as a map to help in managing ones savings and expenditures to meet set goals and objectives. In order to execute a financial plan, one of the features that have to be considered in good financial planning is to ensure that the goal is measurable.
In our case, you plan to save $5,000 for a down payment on a new car. This means that you need to save up to $5,000 in order to afford the car down payment. The following steps can be used;
1. Determine the goal: our goal is to save up to $5,000. The amount is a measurable figure that can be recorded as a goal.
2. Determine measurable ways to achieve the goal: this involves first determining the time you need to achieve the goal and the times and amount you will save each period to achieve $5,000 at the end of the time-frame. Lets say you need to save $5,000 in ten days, this implies that you will need to save (5,000/10)=$500 per day.
3. Keep a record every time you make a contribution towards your savings account to track how far you have reached.
4. Once the time has elapsed, calculate the total amount of savings you have collected over time to check if the plan was achieved.
some examples would be :movie tickets,concert tickets,Starbucks, a video game purchased from the mall
Answer:
$6,250
Explanation:
Cost of machine = $114,800
Salvage value = $14,800
Life of machine = 4 years
Depreciable cost = Cost - Salvage value
= $114,800 - $14,800
= $100,000
Date of purchase = October 1, 2020
Assets used for period in 2020 = 3 months
Annual depreciation:
= Depreciable cost ÷ life of assets
= $100,000 ÷ 4
= $25,000
Depreciation expense for 2020:
= Annual depreciation × (3 ÷ 12)
= 25,000 × (3 ÷ 12)
= $6,250
