Which of the following is NOT a liability?

In ascertaining whether a borrower has the ability to pay off his loan over time, a mortgage bank may rely on calculating a tota

Paha777 [63]

Answer:

Total debt ratio will be 44 %

So option (c) will be the correct option

Explanation:

We have given monthly principal and interest on mortgage loan = $635

Monthly Tax and insurance payments = $125

Car lease payment = $350

Now total monthly obligations = $625+$125+$350 = $1100

Gross monthly income = $2500

We have to find the total debt ratio

We know that total debt ratio is given by

Debt ratio $=\frac{total\ obligation}{total\ income}=\frac{$1100}{$2500}=0.44=44$ %

So option (c) will be the correct option

8 0

3 years ago

Golding Bank provided the following data about its resources and activities for its checking account process: Resources Activiti

N76 [4]

Answer:

Please see below

Explanation:

The question above is incomplete. See concluding parts

2. Calculate the activity rates for the four activities . Round your answers to the nearest cent. Processing account per account issuing statement processing transactions per enquiry. If the total number of statement issued was 20,000 calculate the cost of the issuing statements activity.

1. Capacity cost rate

= Total resources / Total checking processing hours

= $396,000 / 22,000

= $18 per hour

2. Calculate the activity rates for the four activity. Round your answers to the nearest cent.

Processing accounts

= 0.20 × $18 = $3.6 per account

Issuing statements

= 0.10 × $18 = $1.8 per statement

Processing transactions

= 0.05 × $18 = $0.9 per transaction

Answering inquiries

= 0.15 × $18 = $2.7 per inquiry

If the total of issuing statement was 20,000 calculate the cost of issuing the issuing statement activity

Issuing statement

= 20,000 × $1.8

= $36,000

3 0

2 years ago

Consider a project to supply Detroit with 20,000 tons of machine screws annually for automobile production. You will need an ini

GrogVix [38]

Answer:

a) expected revenue = 20,000 tons x $600 = $12,000,000 per year

initial investment = $3,000,000 + $300,000 = $3,300,000

contribution margin per unit = $600 - $450 = $150

total contribution margin = $150 x 20,000 = $3,000,000

annual fixed costs = $850,000

depreciation expense per year = $750,000

tax rate = 38%

required return rate = 18%

after tax salvage value = $280,000 x (1 - 38%) = $173,600

NCF₀ = -$3,300,000

NCF₁ = [($3,000,000 - $850,000 - $750,000) x 0.62] + $750,000 = $1,618,000

NCF₂ = $1,618,000

NCF₃ = $1,618,000

NCF₄ = $1,618,000 + $300,000 + $173,600 = $2,091,600

NPV = $1,296,797.61

IRR = 36.36%

b) our best case scenario:

expected revenue = 20,000 tons x $660 = $13,200,000 per year

initial investment = $2,550,000 + $285,000 = $2,835,000

contribution margin per unit = $660 - $450 = $210

total contribution margin = $210 x 20,000 = $4,200,000

annual fixed costs = $850,000

depreciation expense per year = $637,500

tax rate = 38%

required return rate = 18%

after tax salvage value = $322,000 x (1 - 38%) = $199,640

NCF₀ = -$2,835,000

NCF₁ = [($4,200,000 - $850,000 - $637,500) x 0.62] + $637,500 = $2,319,250

NCF₂ = $2,319,250

NCF₃ = $2,319,250

NCF₄ = $2,319,250 + $285,000 + $199,640 = $2,803,890

NPV = $3,655,445.13

IRR = 74.34%

our worst case scenario:

expected revenue = 20,000 tons x $540 = $10,800,000 per year

initial investment = $3,450,000 + $315,000 = $3,765,000

contribution margin per unit = $540 - $450 = $90

total contribution margin = $90 x 20,000 = $1,800,000

annual fixed costs = $850,000

depreciation expense per year = $862,500

tax rate = 38%

required return rate = 18%

after tax salvage value = $238,000 x (1 - 38%) = $147,560

NCF₀ = -$3,765,000

NCF₁ = [($1,800,000 - $850,000 - $862,500) x 0.62] + $862,500 = $916,750

NCF₂ = $916,750

NCF₃ = $916,750

NCF₄ = $916,750 + $315,000 + $147,560 = $1,379,310

NPV = -$1,060,302.54

IRR = 3.56%

3 0

3 years ago

The balance sheet of a corporation reports ______. only the debts of the business and its owners only the results of the busines

grandymaker [24]

Answer:

only the results of the business' activities

Explanation:

balance sheet is among the three main financial statements prepared by a corporation. It reports the financial positions of the business by showing the value of assets, liabilities, and the shareholder's equity at any point in time. Therefore, a balance sheet shows the net worth of the corporation.

The preparation of the balance sheet follows the accounting equation of assets equals liabilities plus shareholder equity. On one side, the balance sheet reports the assets and liabilities and equity on the other. In other words, the balance sheets indicate how the assets of a business are financed. It does not report on the personal activities of business owners.

6 0

3 years ago

The total sales of a product, by all competitors in the industry, is:____.a. highest in the introduction stage.b. lowest in the

irina1246 [14]

Answer:

The total sales of a product, by all competitors in the industry, is:____

e. lowest in the market introduction stage.

Explanation:

The product life cycle refers to the time period when a product is first introduced to a market until it exits the market. There are four main stages in a product life cycle. They include introduction, growth, maturity, and decline. It is during the introduction phase that the total sales are lowest. The low sales are witnessed again during the latter stage of decline. The highest sales are achieved during the maturity stage.

3 0

3 years ago