The debt to income ratio is 86 percent. This is high so the family should not buy a house.
<h3>The total debt that is owed by this family </h3>
First mortgage = $43,000
Outstanding debts = $12,200
Car loan = $13,700
Second mortgage =$25,700
The total debt that this family is owing is given as
$43,000+ $12,200+$13,700+$25,700
= 94600 dollars
The total income that this family makes is given as $110,000.
The debt to income ratio would be
94600/$110,000.
= 0.86
Therefore the debt to income ratio that this family has is 86%.
Given that their debt to income ratio is high, it is advisable that the family has to stay away from purchasing a new house.
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Explanation:
Italy's opportunity cost of producing a pound of cheese is
= 5 barrels of beer
Germany's opportunity cost of producing a pound of cheese is
= 10 barrels of beer
Italy's opportunity cost of producing a barrel of beer is
=
= 0.2 pounds of cheese
Germany's opportunity cost of producing a barrel of beer is
=
= 0.1 pounds of cheese
Italy has a comparative advantage in producing cheese, while Germany has a comparative advantage in producing beer.
A country is said to be enjoying a comparative advantage if it can produce a good at a lower opportunity cost.
Italy can gain from trade if it is getting more than 5 barrels of beer for each pound of cheese. Similarly, Germany can gain from trade if it is getting more than 0.1 pounds of cheese.
Both the countries will gain from the trade if the price of trade is 8 barrels of beer per pound of cheese and 9 barrels of beer per pound of cheese.
Italy will not accept 3 barrels of beer per pound of cheese and 1 barrel of beer per pound of cheese because it is not covering the opportunity cost.
Answer:
d. Net income is overstated and assets are overstated
Explanation:
The journal entry to record the depreciation expense is shown below:
Depreciation expense A/c Dr
To Accumulated depreciation A/c
(Being the depreciation expense is recorded)
But if depreciation is failed to record, then the net income is overstated and assets are overstated as the accumulated depreciation decrease the cash balance and The net income overstated represents the understated in an expense account
Answer:
The 38,800 mattresses need to be produced in the first quarter (January, February, March) of 2013
Explanation:
The computation of the mattresses need to be produced in the first quarter is shown below:
= Total sales in first quarter + ending finished goods inventory - beginning finished goods inventory
where,
Total sales in the first quarter = January Sales + February sales + March sales
= 10,000 + 14,000 + 13,000
= 37,000 units
Ending finished goods inventory = April sales × percentage given
= 16,000 × 30%
= 4,800 units
And, the Beginning Finished goods inventory is 3,000 units
Now put these values to the above formula
So, the value would be equal to
= 37,000 + 4,800 - 3,000
= 38,800 units
Answer:
B. the transfer of a previously-issued security with a very long maturity
Explanation:
The secondary market is a market were securities previously bought directly from the original issuer can be traded or exchanged i.e. transferred to other interested investors for a consideration. Apart from stocks, other securities that can be bought and sold in the secondary market are bonds, options, and futures.
The words follow on public offering and aftermarket are also used interchangeably with secondary market. New issues are traded on the primary market.