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2 years ago

A person's debt-to-income ratio describes.

Business

2 answers:

Mamont248 [21]2 years ago

7 0

Answer:

D. how much the person has borrowed compared to how much he or she earns

Explanation:

A person's debt-to-income ratio, abbreviated as DTI, is a measure of a person's monthly debt obligation against their monthly gross income. It shows the fraction or percentage of gross income that is committed to debt repayments. Lenders use the debt-to-income ratio to assess a borrower's ability to repay future loans.

Calculating the debt-to-income ratio requires one to add up all their existing loan repayments and divide that figure with their gross income. Lenders insist on a ration that does not exceed 36% as per the 28/36 rule.

alina1380 [7]2 years ago

7 0

Answer: D; how much the person has borrowed compared to how much he or she earns

Explanation: A pex

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Parks Corporation is considering an investment proposal in which a working capital investment of $10,000 would be required. The

Virty [35]

Answer:

$4,355.26

Explanation:

The net present value is the present value of future cash flows expected from the project minus the initial investment outlay

initial investment outlay=working capital investment = -$10,000

Years 1-5 cash inflow=$2,000

Year 6 cash inflow=normal cash inflows+release of working capital

Year 6 cash inflow=$2,000+$10,000=$12,000

the present value of a future cash flow=cash flow/(1+r)^n

n is 1 for year cash inflow 2 for year 2 cash inflow, 3 for year 3 cash inflow and so on

NPV=-$10,000+$2,000/(1+10%)^1+$2,000/(1+10%)^2+$2,000/(1+10%)^3+$2,000/(1+10%)^4+$2,000/(1+10%)^5+$12,000/(1+10%)^6

NPV=$4,355.26

5 0

2 years ago

Abbe Corporation uses activity-based costing. The company makes two products: Product A and Product B. The annual production and

zepelin [54]

Answer:

Activity Rates are:

1 = $14.55 per activity

2 = $8.69 per activity

3 = $57.47 per activity

Cost per product

A = $32.2525

B= $34.7333

Explanation:

As for the provided information,

There are three activities.

Activity 1 = $17,460 and total = 1,200

Rate of activity = $17,460/1,200 = $14.55 per activity

Activity 2 = $19,987 and total activity = 2,300

Rate of activity = $19,987/2,300 = $8.69 per activity

Activity 3 = $29,884 and total activity = 520

Rate of activity = $29,884/520 = $57.47 per activity.

Costs of each product

Product A = ($14.55 $\times$ 600) + ($8.69 $\times$ 1,700) + ($57.47 $\times$ 40)

= $8,730 + $14,773 + $2,298

= $25,801

Cost per unit = $25,802/800 = $32.2525

Product B = ($14.55 $\times$ 600) + ($8.69 $\times$ 600) + ($57.47 $\times$ 120)

= $8,730 + $5,214 + $6,896

= $20,840

Cost per unit = $20,840/600 = $34.73

7 0

3 years ago

A company has a process that results in 26000 pounds of Product A that can be sold for $8 per pound. An alternative would be to

Tom [10]

Answer:

Sell now, the company will be better off by $18200

Explanation:

The computation is shown below:

Sales value after processing the product (26,000 × $14) $364,000

Less: sales value (26,000 × $8) $208,000

Increase in advantage due to processing $156,000

Less: processing cost ($174,200)

Net disadvantage of processing the product ($18,200)

As we can see the final answer comes in negative which means the product should be sold now

8 0

2 years ago

Imagine you are the owner of a natural gas company. You can either extract as much of the resource as fast as possible or delay

Arte-miy333 [17]

Answer:

Explanation:

7 0

3 years ago

Assume that Global Cleaning Service performed cleaning services for a department store on account for $180. How would this tran

tamaranim1 [39]

Answer:

(B) Increase both assets and equity by $180

Explanation:

The transaction analysis model tells us that:

Assets = Liabilities + Owner's Equity

Owner's equity = Contributed Capital + Retained Earnings

Retained Earnings = Net Income − Dividends

and

Net Income = Income − Expenses

The expanded accounting equation is obtain if all substitutions are made:

Asset = Liabilities + Contributed Capital + Income – Expenses − Dividends

In the Global Cleaning Service`s case:

Assets are increased either because the service is collected or is an account receivable. As the service provided is a revenue (income) is part of the Owner's Equity that also increase. Both, Asset and Owner's Equity, increase in 180.

7 0

3 years ago