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4 years ago

Why should I worry about debt ? Doesn’t everyone have it ?

Business

1 answer:

lilavasa [31]4 years ago

4 0

Answer:

You shold worry about debt...

Explanation:

because rising debt slows income growth, increases federal interest payments, pushes up interest rates, reduces our ability to respond to the next recession or emergency, burdens younger and future generations, and increases the risk of fiscal crisis! Also, everyone has it at one time in their life.

Hope this helps!

Please mark me brainliest...

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For services, business analysis must consider __________, which finds ways to match the availability of the service to when it i

kvv77 [185]

The answer is capacity management. Services are perishable and limited, thus a service provider must be able to cooperate with the availability of the product in order for the demand to coincide with the capacity over the time duration of the demand cycle.

6 0

4 years ago

Which of the following is a criterion for the classification of a liability as current? I. It is a debt that can be paid from ex

Lelechka [254]

Answer:

It must be paid within one year or the operating cycle, whichever is shorter.

Explanation:

Current liabilities are short term obligations that a company needs to pay within the current financial year. Companies use current assets to offset their current liabilities. Examples of current liabilities include accounts payable, interest payable on outstanding loans, dividends payables, and long term debts maturing within the current financial year.

A business needs to monitor its levels of current liabilities to ensure it has sufficient current assets to pay them. There are situations where a company finds it necessary to obtain a loan to finance its current liabilities. The inability to pay current debts consistently may be indicative of more profound financial challenges within the organization.

6 0

3 years ago

Keating Co. is considering disposing of equipment with a cost of $52,000 and accumulated depreciation of $36,400. Keating Co. ca

Nuetrik [128]

Answer:

$12,750

Explanation:

The computation of net differential income is shown below:-

For computing the net differential income first we need to find out the net income if equipment is sold and net income if offer lease is accepted which is given below:-

Net income if equipment is sold = Sales consideration - Commission

= $25,000 - ($25,000 × 7%)

= $25,000 - $1,750

= $23,250

Now,

Net income if offer lease is accepted = Lease amount - Repair, insurance and property tax expenses

= $46,000 - $10,000

= $36,000

So,

Net differential income from the lease alternative = Net income if offer lease is accepted - Net income if equipment is sold

= $36,000 - $23,250

= $12,750

4 0

3 years ago

The Stewart Company has $1,695,500 in current assets and $678,200 in current liabilities. Its initial inventory level is $423,87

ANEK [815]

Did you check on chegg alread

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4 years ago

A University of Iowa basketball standout is offered a choice of contracts by the New York Liberty.

Ratling [72]

Answer: The lowest interest rate at which the present value of the second contract exceeds that of the first is a. 7 percent.

Explanation:

Calculating present values is a useful way to compare cases where money is to be received in the future. The higher the present value (when comparing cases where you get money), the better. To calculate it, we make use of the next formula:

$PV=\frac{C}{(1+r)^{n}}$

Where PV: Present value,

C: Cash flow at a given period,

r: Interest rate, and

n: Number of periods that will have passed (in this case, we are talking about years).

Now, since we are getting money twice in each case (the first payment one year from today, and the final payment two years from today), we can restructure our present value formula to include these two payments. We will get something like this:

$PV=\frac{C_1}{1+r}+\frac{C_2}{(1+r)^{2}}$

Notice how each fraction represents one of the payments received, with one having an 'n' of 1 year, and the other one having an 'n' of 2 years. C₁ and C₂ represent the first and the second payment, respectively.

Now that we have our completed formula, let's review each contract's present value (PV) with the lowest interest rate (7%), just to see how it turns out. Remember that 7% equals 0.07 in any formula:

Contract A) This one gives her $100,000 one year from today and $100,000 two years from today.

$PV_{A,0.07}=\frac{100000}{1+0.07}+\frac{100000}{(1+0.07)^{2}}\\PV_{A,0.07}=93457.944+87343.873\\PV_{A,0.07}=180801.817dollars$

So Contract A's present value at 7% interest rate would be equal to $180801.817.

Contract B) The second one gives her $132,000 one year from today and $66,000 two years from today.

$PV_{B,0.07}=\frac{132000}{1+0.07}+\frac{66000}{(1+0.07)^{2}}\\PV_{B,0.07}=123364.486+57646.956\\PV_{B,0.07}=181011.442dollars$

So Contract B's present value at 7% interest rate would be equal to $181011.442, which exceeds that of Contract A.

Since among our options of interest rates, 7 percent is the lowest one, and, with this taken into account, the present value of the second contract (Contract B) exceeded that of the first (Contract A), the answer is a. 7 percent.

8 0

3 years ago