Which of the following is not a benefit of contributing to a retirement account

If the employees of San Simeon Company successfully borrowed a large sum of money and purchased the firm from its current owners

schepotkina [342]

We would call this event a leveraged buyout (LBO).

Explanation:

A leveraged buyout is the attempt of buying a company primarily through borrowing. This purchasing involves combination of both equity and debt. The funds borrowed are used to buy out the stockholders in the company. The employees, managers, or investors now become the owners of the firm. The firm is taken private, when the managers buy all of the stock of the firm and take it off the open market.

In the above scenario, the employees of San Simeon company purchases the firm from their current owners by borrowing large sum of money.

7 0

3 years ago

An associate professor of physics gets a $200 a month raise. She figures that with her new monthly salary she can buy more goods

azamat

Answer:

The correct answer is a. Her real and nominal salary have risen.

Explanation:

The term nominal salary refers to the salary literally expressed in money; It is the sum of money paid to the worker for the work done during the stipulated day. When referring to the nominal salary we cannot give ourselves a general idea about the level or real value of the salary. The true value of this salary depends entirely on the level of the prices that correspond to the objects of personal consumption, also on the value of the services that are required, as well as the volume of taxes, among other common expenses.

For its part, the real salary refers to the salary expressed with respect to livelihoods and services available to the worker with his salary; Indicates the amount of consumer items that the worker is able to acquire, as well as services that a worker can buy with his nominal salary (which is handled in the monetary amount that the worker receives)

7 0

3 years ago

SDJ, Inc., has net working capital of $2,060, current liabilities of $5,550, and inventory of $1,250.

alexandr1967 [171]

Answer:

1.

Current ratio = 1.37 times

2.

Quick Ratio = 1.15 times

Explanation:

The current ratio and quick ratios both are measures to assess the liquidity position of businesses. These are useful indicators of how well the business is equipped to meet its current obligations using its liquid assets.

To calculate these ratios, we must first determine the value of current assets. We are given the value of net working capital. The net working capital is the difference between the current assets and the current liabilities.

Net Working capital = Current assets - Current Liabilities

2060 = Current Assets - 5550

2060 + 5550 = Current Assets

Current assets = $7610

Requirement 1.

The current ratio is calculated as follows,

Current Ratio = Current Assets / Current Liabilities

Current ratio = 7610 / 5550

Current Ratio = 1.3711 rounded off to 1.37 times

Requirement 2.

The quick ratio is calculated as follows,

Quick Ratio = (Current Assets - Inventories) / Current Liabilities

Quick Ratio = (7610 - 1250) / 5550

Quick Ratio = 1.1459 rounded off to 1.15 times

6 0

3 years ago

On March 1, Bartholomew Company purchased a new stamping machine with a list price of $77,000. The company paid cash for the mac

nikdorinn [45]

Answer:

$81,020

Explanation:

The cost of the asset includes the cost of purchase less any given discount or tax returns and the addition of other cost incurred in making the asset available for use.

As such, the cost of the machine

= $77,000 - (5% * $77,000) + $2,000 + $4,520 + $1,350

= $81,020

The routine maintenance cost is not a part of the asset but an expense in p/l.

8 0

3 years ago

To economists, the social cost of unions depends primarily on

Arisa [49]

To economist, the social cost of union depends primarily on the people. People do not start their lives with fully developed theories about systems of society where unions are formed to fight for socialism. This organize monopolies to break down competition.

4 0

3 years ago

Which of the following is not a benefit of contributing to a retirement account￼

Which of the following is not a benefit of contributing to a retirement account