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2 years ago

When offering financial products to clients, you may:

Business

1 answer:

Anton [14]2 years ago

6 0

Answer:

d. All of the above.

Explanation:

All the three actions are appropriate actions for when offering financial products to clients.

a) is appropriate because prior clients are likely to have most of the information in the company's records.

b) is appropriate because as you gain experience, you become more knowledgeabe and intuitive about which clients should be offered a determined product.

c) is appropriate because as a financial worker, it is your duty to decline requests for financial products from clients who do not meet the given criteria.

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The following financial information is presented for three different companies. Determine the missing amounts.

Leto [7]

Answer:

Note: The organized question is attached

d. Net income = Income from operating - Other expenses and losses

Net income = $15,000 - $4,000

Net income = $11.000

f. Gross profit - Sales - Cost of goods sold

$38,000 = $95,000 - Cost of goods sold

Cost of goods sold = $95,000 - $38,000

Cost of goods sold = $57,000

h. Income from operations = Net income - Other expenses and losses

Income from operations = $11,000 + $7,000

Income from operations = $18,000

g. Income from operations = Gross profit - Operating expenses

$18,000 = $38,000 - Operating expenses

Operating expenses = $38,000 - $18,000

Operating expenses = $20,000

7 0

3 years ago

Assume that a company sells customized sweatshirts for $15 per unit. It pays a sales commission of $5 per unit sold. The company

Annette [7]

Answer:

The The number of sweatshirts the company would need to sell to earn a target profit of $1,710 is closest to 570 sweatshirts.

Explanation:

This can be calculated as follows:

Selling price per unit = $15

Total cost price per unit = Average unit cost + Sales commission per unit = $7 + $5 = $12

Profit per unit = Selling price per unit - Total cost price per unit = $15 - $12 = $3

Target profit = $1,710

Number of sweatshirts to sell to earn a target profit = Target profit / Profit per unit = $1,710 / 3 = 570

5 0

2 years ago

Loni owns a software company and has a great idea for a new app. In order to build the app, she will need to hire a computer exp

never [62]

Answer:

No, Loni should not take the loan and build the app.

Explanation:

If she borrows $87,000 to build the app, at the end of the year she will have to pay $87,000 x (1+0.15) = 100,050 in principal and interest to the bank.

After selling the app she will get 99,000 - 100,050 = $1,050.

In other words, she will be making a loss.

6 0

3 years ago

A distributor of large appliances needs to determine the order quantities and reorder points for the various products it carries

laiz [17]

Answer:

a) 32 refrigerators

b) 28.39 approximately 29 refrigerators

Explanation:

Given:

Cost of order, S = $100

H = 20% of 500 = 100

Cost of refrigerator = $500

Annual demand, D = 500

S.d = 10

Lead time, L = 7 days.

a) To find the economic order quantity, Q_opt, let's use the formula:

$Q_opt = \sqrt{\frac{2*D*S}{H}}$

$= \sqrt{\frac{2*500*100}{100}} = 32$

The economic order quantity is 32 refrigerators.

b) The reorder point, R, is calculated as:

R = (d' * L) + ( z * s.d)

Where d' is daily demand which is calculated by dividing annual demand by 365 days.

d' = 500/365 = 1.37

At 97% service probability.

Using the excel function, NORMSINV(0.97) = 1.88.

Therefore z = 1.88

Solving for R, we have:

R = (1.37 * 7) + (1.88 * 10)

= 28.39

≈ 29

If the distributor wants a 97% service probability, the reorder point, R, should be 29 refrigerators

8 0

3 years ago

Internal rate of return method The internal rate of return method is used by Testerman Construction Co. in analyzing a capital e

Eddi Din [679]

Answer:

Testerman Construction Co.

Internal rate of return method in analyzing capital expenditure:

Present value of expenditure = $149,630

Present of cash inflows annuity = $149,630 (using 20% discount rate and present value annuity factor of 3.3251 x $45,000)

NPV = $0 (PV of cash outflow - PV of cash inflow)

Therefore, the IRR = 20%

Explanation:

a) Data and Calculations:

Investment cost = $149,630

Annual net cash flows = $45,000

Investment period = 6 years

Annuity of future cash flows = 3.3251

b) Testerman’s IRR (Internal Rate of Return) is a capital budgeting and analysis tool which determines the discount rate that makes the present value of future inflows equal to the present value of outflows from a project. This IRR helps the managers to determine the projects that add value and are worth undertaking. IRR is based on assumptions. Similar projects with the same IRR will differ in returns due to the differences in timing and the size of the cash, the amount of debts and equity used to generate the returns, and the assumption of a constant reinvestment may which IRR makes.

7 0

3 years ago