Why does the tape measure hook move?

Debt analysis Springfield Bank is evaluating Creek Enterprises, which has requested a $ 3 comma 620 comma 000 loan, to assess

stepan [7]

Answer:if the debt ratio is lower,the loan request should be granted but if it is higher the loan request should not be granted by the bank.

Explanation:

Debt ratio is a financial ratio which shows the ability of a firm to pay their debt as they fall due.lenders are more concerned with the liquidity position of a firm in order to guarantee the solvency of the firm whenever a loan is granted to such a firm. The debt ratio is used to know the financial leverage of a firm and the financial risk involved in lending to such firm. When a firm is said to be highly leverage it means that such a firm will find it difficult to pay their debt as they fall due because the liabilities in their balance sheet is more than their assets. Debt ratio is calculated as

Total Liabilities/ Total Assets

The Debt ratio is calculated from the Liabilities and Asset figures obtained from their balance sheet. When it is calculated, lower ratio is more preferable than higher rato because it means that a firm will find it easy to settle their debt to their lenders as that debt fall due.but a higher ratio is an indication that such firm will not be able to meet their debt obligation to their lenders as they fall due. Therefore, when a firm has a higher debt ratio it is not advisable to grant a loan to such a firm by the bank. As regard the loan request of Creek Enterprises from Springfield bank, if the debt ratio of Creek Enterprises is lower, the loan should be granted but if it is higher the bank should not grant the loan.

5 0

3 years ago

Pizza International, Inc., reported the following information (in thousands): Operating Activities Net Income $ 236 Depreciation

Aleks04 [339]

Answer:

$22,640

The explanation is shown below:-

Explanation:

The computation of cash flow from operating activities using the direct method is shown below:-

Direct method

Pizza International, Inc.

Statement of cash inflow

Cash flow from operating expenses

Cash received from customers $143,777

($143,951 - $174)

Cash Paid

To suppliers ($53,773)

($45,700 - $651 + $8,724)

To salaries and wages ($56,855)

For office expenses ($7,730)

($7,785 + $668 - $723)

For income tax expenses ($2,779)

($50 + $2,729)

Net cash inflow from operating

activities $22,640

It is mainly due to no depreciation expenses for cash products. Depreciation expenses do not contribute to cash outflows. Because of which company has reported large cash inflow from operations compared to near net loss.

3 0

4 years ago

The management of Retz Corporation is considering the purchase of a new machine costing $500,000. The company's desired rate of

kirill [66]

Answer:

The present value index is 0.91 which is less than 1. So, the investment should not be accepted.

Explanation:

Present Value Index : It shows the ratio between the sum of present value of all years cash inflows after applying the discount rate and initial investment.

In mathematically,

Present value index = Sum of present value of all years cash flows with discount rate ÷ Initial Investment

where,

Present value = Net cash flow × Discount rate

So,

Year 1 = $180,000 × 0.909 = $163,620

Year 2 = $120,000 × 0.826 = $99,120

Year 3 = $100,000 × 0.751 = $75,100

Year 4 = $90,000 × 0.683 = $61,470

Year 5 = $90,000 × 0.621 = $55,890

Now, Sum all the yearly cash inflows which equals to

= $163,620 + $99,120 + $75,100 + $61,470 + $55,890

= $455,200

So, the present value index = $455,200 ÷ $500,000 = 0.91

Hence, the present value index is 0.91 which is less than 1. So, the investment should not be accepted.

5 0

3 years ago

If a certain household earns and spends $24,000 per year and, on the average, holds a money balance of $6,000, then the velocity

solong [7]

If a certain household earns and spends $24,000 per year and, on average, holds a money balance of $6,000, then the velocity of money for this household is 4.

A household consists of one or more people who live in the same dwelling and share meals. It can also consist of a single-family or another group. Households are the basic unit of analysis in many social, microeconomic, and government models and are important to economics and inheritance.

The definition of household relates to family or social units living together, or household behavior. You and your family members who live with you are an example of your household. Budgets and checkbooks are examples of household budget tools.

Learn more about household here:brainly.com/question/9417571
#SPJ4

4 0

2 years ago

If it takes a supplier 25 days to deliver an order once it has been placed and the standard deviation of daily demand is 20, whi

Volgvan

Answer:

option (B) 100

Explanation:

Data provided in the question:

Number of days supplier takes to deliver an order once it has been placed i.e the lead time = 25 days

Standard deviation of daily demand = 20

Now,

Standard deviation of usage during lead time

= Standard deviation of daily demand × √(Lead time)

= 20 × √25

= 20 × 5

= 100

Hence,

The answer is option (B) 100

7 0

3 years ago

Why does the tape measure hook move?​

Why does the tape measure hook move?