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prohojiy [21]
3 years ago
15

Jordan has the following assets and liabilities: Two cars $10,000 House $200,000 Mortgage $100,000 Cash $1,000 Car loans $3,000

Checking account balance $2,000 Credit card balance $1,000 Suppose that Jordan wins $100,000 in the lottery. If he uses that money to pay off his mortgage, his wealth would_____; if he puts that money in his checking account, his wealth would_____;
Business
1 answer:
kirill [66]3 years ago
7 0

Answer: B. increase to $209,000;increase to $209,000

Explanation:

<em>If he uses that money to pay off his mortgage, his wealth would </em><em><u>increase to $209,000</u></em><em> if he puts that money in his checking account, his wealth would </em><em><u>increase to $209,000.</u></em>

<u></u>

A person's wealth is calculated by deducting their liabilities from assets. In this case Jordan's wealth is;

= 10,000 + 200,000 + 1,000 + 2,000 - 100,000 - 3,000 - 1,000

= $109,000

If he pays off the Mortgage his debt will reduce by $100,000 which will increase his wealth to $209,000.

If he puts the money in his checking account, his assets will increase by $100,000 which will bring his wealth to $209,000 as well.

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Privett Company Accounts payable $29,317 Accounts receivable 70,256 Accrued liabilities 6,298 Cash 16,928 Intangible assets 42,4
makkiz [27]

Answer:

$142,083

Explanation:

Current asset = Accounts receivable + Cash + Inventory + Marketable securities + Prepaid expenses = 70,256 + 16,928 + 73,062 + 36,421 + 2,512 = $199,179

Current liabilities = Accounts payable + Accrued liabilities + Notes payable (short-term) = 29,317 + 6,298 + 21,481 = $57,096

Working capital = Current assets - Current liabilities = 199,179  - 57,096  = $142,083

6 0
2 years ago
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ritical analysis Q10 Suppose that unexpectedly rapid growth in real income abroad leads to a sharp increase in the demand for Am
mash [69]

Answer:

Output and employment will increase exerting modest upward pressure on the price level.      

Explanation

In simple words, the increased demands for the good would work as an incentive for the producer to produce more and they can also lower their cost of production by producing in mass which will further lead to economies of scale.

More production means more requirement of workers which will eventually lead to more employment opportunities in the country. However, this increase   would lead to modest increase in prices due to more purchaser power in the country.

4 0
3 years ago
The standard deviation of a portfolio consisting of 30% of Stock X and 70% of Stock Y is:
andrew-mc [135]

Answer:

The portfolio SD is A. 20.65%

Explanation:

The standard deviation tells the total risk (both systematic and unsystematic) associated with a stock or a portfolio. The portfolio risk or the standard deviation of portfolio can be calculated using the following formula as attached in the picture below.

Using this formula, the standard deviation of the portfolio is:

SDp = √(0.3)² * (0.2)² + (0.7)² * (0.25)² + 2 * (0.3)*(0.7) * 0.4 * (0.2)*(0.25)

Portfolio SD = 0.20645 or 20.645% rounded off to 20.65%

5 0
3 years ago
Which type of fund should you consider if you're seeking high long-term returns and can tolerate the normal ups and downs of the
guapka [62]

Answer:

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If you have done enough research in a particular company to invest in them then growth funds do generate a lot of profit however they are a bit risky.

4 0
3 years ago
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Lakeland, Inc. has 25,000 shares of 6%, $100 par value, noncumulative preferred stock and 50,000 shares of $1 par value common s
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Answer:

The common stockholders will receive a dividend of $100000 in 2015

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The preferred stock is non cumulative which means that in case it does not pay dividends in a certain year, the dividends will no be accumulated and the company will not be obliged to pay these dividends in later year.

The per share preferred stock dividend for the company is = 100 * 0.06 = $6

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8 0
3 years ago
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