Answer:
a) $1,400
b) $1,800
c) $820
Explanation:
If the annual income is $60,000, the gross monthly income is I=60,000/12=5,000.
a) The maximum amount you should spend each month on a mortgage payment is:
b) The maximum amount you should spend each month for total credit obligations (including mortage) is:
c) If we need only 70% of the maximum allowed for the mortage, we have more income available for other debt payments.
The 70% represents:
We substract this from the total budget for debt payments and we have the budget for all other debts but mortage:
Answer:
Printer set up error
Explanation:
The best internal control to detect this error, is to do a quick check on the printer set.
$14,000 rupees will be disbursed totally in march.
<u>Explanation</u>:
- The operating cost is $38,000 per month. This is including depreciation. So cash pending on March 1 is $8,000.
- At the end of March month, the cash balance of $6000 is required. So a total of $14,000 is required at the end of the month. Including the labor costs, he wants to pay $14,000.
- He can borrow money in multiples of $1000. For emergencies, this money can be borrowed. So $14,000 should be dispersed in the month of March.
Answer: a. Allow management to conserve cash, give stockholders more shares, and cause no change in total assets, liabilities, or stockholders' equity.
Explanation:
Stock Splits increase the number of shares a company without actually changing their market capitalization by simply dividing the shares available.
There are a bunch of reasons to do this but one of them is to conserve cash. By splitting stock, managers can conserve cash by not paying dividends but still proving that the company can still pay dividends. The Shareholders getting MORE stock would be the reward.
Since Stock splits don't change the Market Capitalization, they don't have an effect on Equity either and by extension Assets and Liabilities.
Answer:
the answer is =32291.67.
The firm should take the advantage of the new quantity as the total cost is lesser as compared with the old supplier. the firm can save $340 by approximately taking the advantage of the new quantity discount.
Explanation:
Solution
Given that:
The Annual demand D = 5000 boxes
The Cost C = $6.4 per each box
The Carrying cost H = 25% of the unit cost = 0.25*6.4 = 1.6
The ordering costs S = $25.00
Now,
EOQ =√2DS/H
EOQ =√(2*5000 * 25)/1.6
Thus,
EOQ =Q = 395.28
The Total cost = DC + (Q/2)H + (D/Q)S
= 5000*6.4 + (395.28 /2) 1.6 + (5000/395.28)25
Then,
T = 32000 + 316.23 + 316.23
= 32632.46
So,
The new supplier has offered to sell the same item for the amount of $6.00 if Q = 3,000 boxes
Hence,
The total cost = 5000 * 6 + (3000/2)1.5 + (5000/3000)25
= 30000 + 2250 + 41.67
= 32291.67
Therefore, The firm should take the advantage of the new quantity as the total cost is lesser as compared with the old supplier. the firm can save $340 by approximately taking the advantage of the new quantity discount.
