In one paragraph describe the general advantages and drawbacks of the premium pricing strategy.For exapmle, explain where it fal
1 answer:
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Answer:
cash flow on total assets ratio = 4.8 %
so correct option is a) 4.8%
Explanation:
given data
net cash flows = $120,000
total cash flows = $500,000
average total assets = $2,500,000
to find out
cash flow on total assets ratio
solution
we get here cash flow on total assets ratio that is equal to
cash flow on total assets ratio = Operating cash flow ÷ Average total assets ..................1
put here value we get
cash flow on total assets ratio =
cash flow on total assets ratio = 4.8 %
so correct option is a) 4.8%
Answer: The loan was taken for 265 days.
We arrive at the answer as follows:
First we find the ratio of interest paid to the total loan amount to determine the interest rate:
Interest paid = $1,307
Loan Amount = $45,000
Since the interest rate calculated above is less than the annual interest rate at 4%, we conclude that the loan taken was for a period of less than one year.
We can determine the period for which the loan was taken as follows:
Let 'x' be the time for which the loan was taken.
We need to solve for x in the proportion below
0.04 : 365 :: 0.029044444:x
Solving we get,