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3 years ago

Family members may lend you money based on

Business

1 answer:

cupoosta [38]3 years ago

3 0

Answer:

D)Guilt

Explanation:

Commercial lenders consider the ability to repay, collateral offered, credit score, loan purposes, business plan, among other things before advancing credit to an individual or firm. Lenders have formal requirements to be met for a loan to be issued. As for family, there are no set requirements or criteria for lending amongst members.

Family members may lender based on various reasons. From the list provided, guilt could be a base for lending. A family member may feel bad when they turn down a request from a fellow member. To avoid that guilt feeling, a family member will lend out money to another member.

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Consider the following financial statement information for the Ayala Corporation: Item Beginning Ending Inventory $ 10,500 $ 11,

MakcuM [25]

Answer:

Cash conversion cycle = 41.67

Operating Cycle = 86.03

Explanations:

Average Invetory = (10500 + 11500)/2 = 11,000.00

Average accounts receivable(AR) = (5500 + 5800)/2 = 5,650.00

Average Accounts payable (AP)= (7700 + 8100)/2 = 7,900.00

Credit Sales = 85,000.00

AR Turnover = 85000/5650 = 15.04

Days sales outstanding = 365/ 15.04 = 24.26

Cost of goods sold = 65,000.00

AP turnover = 65000/7900 = 8.23

Days payable outstanding = 365/8.23 = 44.36

Inventory turnover= 65000/11000 = 5.91

Days inventory O/S = 365/5.91 = 61.77

Cash conversion cycle = Days Inventory outstanding + days Sales o/S - Days Payable O/S = 61.77 + 24.26 - 44.36 = 41.67

Operating Cycle = Days' Sales of Inventory + Days Sales Outstanding 61.77 + 24.26 = 86.03

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3 years ago

When companies incur selling and administrative costs, those costs ________.

9966 [12]

Answer:

increase

Explanation:

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3 years ago

Bobs appliances sells and services household appliances such as washing machines, dish washers, ranges, and refrigerators. over

kozerog [31]

Answer:

Explanation:

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3 years ago

what is the average inventory of a business that turns over inventory 10.0 times a year and has a cost of goods sold of $300,00

nikdorinn [45]

Answer:12

Explanation:

4 0

3 years ago

You are considering the purchase of an industrial warehouse. The purchase price is $1 million. You expect to hold the property f

Oliga [24]

Answer:

A. Cap rate = Debt Service/Current market price of asset

= $70,000/$1,000,000 * 100

= 7%

B. Debt coverage ratio = Net Operating Income/Debt Service

= $108,000/$70,000

= 1.54

C. The largest loan that can be obtained (other terms held constant) if the lender requires a debt service coverage ratio of at least 1.2 is:

= ($70,000 * 1.2)/10%

= $840,000

Explanation:

a) Data and Calculations:

Purchase price of the industrial warehouse = $1 million

Loan to finance acquisition = $700,000

Interest rate = 10%

Term of loan = 30 years

Type of loan repayment = interest-only payments

Annual debt service = $70,000 ($700,000 * 10%)

Effective gross income $135,000

Operating expenses 27,000

Net Operating Income $108,000

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3 years ago