Answer:
1. A compromise should be reached.
In the recession, the other small businesses are suffering including the company in question. If the owner pushes the customers to pay their bills, when the recession ends they may move to other vendors which would have made demanding money from them in the recession a myopic and damaging move.
The business however, also has bills to pay and so needs money to maintain operations as well. A compromise needs to be reached. The owner should contact the other businesses still owing and negotiate with them to pay a certain portion of what they owe with the rest coming later.
This could give the owner enough to keep the business running whilst maintaining the loyalty of his customers.
2. Problems that a business services company could have if customers do not pay include;
- Inability to pay staff.
- Inability to pay utilities like electricity.
- Inability to pay rent and other expenses.
- Increased risk of debt default.
- Growth of company suffers.
Answer: $50,000
Explanation:
The maximum amount the insurance company will pay is $25,000 per person with a topmost of $50,000 per accident for all persons. Peradventure one is involved in an accident and someone is injured, your liability coverage is part of your automobile insurance and will pay for their injuries.
Answer:
$123,400
Explanation:
Calculation to determine what amount on the January pro forma income statement
Freight-out $5,000
(20,000 units x 0.25)
Depreciation on Admin. Equipment $10,000
Sales and Admin Sal. $46,400
[$40,000 + (.02 x $320,000)]
Advertising $12,000
Lease $45,000
Miscellaneous $5,000
Total $123,400
Therefore what amount on the January pro forma income statement is $123,400
Answer:
Pakistan's GDP is 13.81 trillions of rupees.
Explanation:
GDP = C + I + G + NX
Here:
C = 10.50
I = 1.30
G= 2.80
NX = (1.30 - 2.09) = -0.79
GDP = 10.50 + 1.30 + 2.80 - 0.79
GDP = 13.81
