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2 years ago

Based on the given information, what will be the working capital of the company?

Business

1 answer:

Romashka-Z-Leto [24]2 years ago

7 0

Answer:

$37,000

Explanation:

Working capital indicates the difference between a company's current assets and its current liabilities.

Current assets include such as cash at hand, bank balances, cash equivalents, and inventories. Current liabilities are accounts payable, bills, and short term debts.

in this case,

Current assets include

Inventory $50,000

Cash at Bank $ 5,000

prepaid rent $5,000

Total current assets $60,000

current liabilities

Notes Payable $20,000

tax payable $3,000

Total current liabilities  $23,000

Working capital

= $60,000 - $23,000

= $37,000

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Explain how consumer and producer surplus affect economic well-being. When the price of a good or service is – enough, it will e

horrorfan [7]

Answer:

the general welfare will be the sum of consumer surplus and producer surplus.

Explanation:

The consumer and producer surplus assessment serves to measure the overall efficiency of the market, which in turn is associated with overall well-being. An efficient market is one in which both consumers and producers have the incentive to negotiate and effect trade.

Consumer surplus is the difference between the amount he or she is willing to pay and how much he or she actually pays for the product. This surplus is positive when the amount paid is less than the amount for which the consumer would be willing to pay.

Similarly, the producer's surplus is the difference between the market price and the price at which the seller is willing to produce and sell. When the producer's surplus is positive, it means that he sells the product for a price higher than the minimum value that would stimulate him to produce.

Thus, the general welfare will be the sum of consumer surplus and producer surplus.

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3 years ago

North Bank has been borrowing in the U.S. markets and lending abroad, thereby incurring foreign exchange risk. In a recent trans

Vsevolod [243]

Answer:

A) 10.82%

B) 5.27%

C) 8.56%

Explanation:

Given data :

North Bank Borrow ; $1.4 million at 5 percent

Lend in pounds at 9%

spread = ( 4% )

spot rate = 1.454

A) Determine the loan rate to maintain the 4 percent spread

Expected spot rate = 1.43

First step :

Lending amount = $1.4 million / initial spot rate = 1.4 / 1.454 = £ 0.9628 million

calculate the final amount Required in $ to maintain 4% Spread

= principal ( $1.4 million ) + interest ( 9% of 1.4 ) = 1.4 + 0.126 = $1.526 million

In pound ( at the expected spot rate )

= 1.526 / 1.43 = £1.067 million

expected profit = £1.067 - £0.9628 = £ 0.1042 million

Therefore the interest rate tp maintain the 4 percent spread

= 0.1042 / 0.9628 = 10.82%

B) Determine the net interest margin if the bank hedges its forward foreign exchange exposure

Forward rate = 1.46

assuming interest as value calculated above = ( 10.82% )

lending amount = £0.9628 million

Repayment = 0.9628 * 111% * 1.46 = $1.5603 million

therefore return rate = $1.5603 - $1.4 = $0.1603 million = 10.27%

hence : Net interest margin = 10.27% - 5% = 5.27%

C) Determine the loan rate to maintain the 4 percent spread if the bank intends to hedge its exposure using the forward rates.

Forward Hedging contract forward rate = 1.46

lending amount = $1.4 / 1.454 = £ 0.9628 million

Total Interest and Principal Repayment Required in $ to maintain 4% Spread = $1.526 million

In pound = 1.526 / 1.46 = £ 1.0452

Interest = £1.0452 - £0.9628 = £0.0824 million

therefore interest Rate to maintain 4℅ Spread

= ( 0.0824 / 0.9628 ) * 100 = 8.56%

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2 years ago

A Truss Above, a home builder in the United States, secures products such as roofing shingles, cabinets, and plumbing materials

galina1969 [7]

The practice that sees the contractor using outside suppliers to build homes is known as Importing.

<h3>What is importing?</h3>

This refers to when goods are acquired from outside the nation for reasons such as the goods being cheaper and more available.

Truss Above is engaged in importing when it buys goods from outside suppliers and then uses it in the United States.

Find out more on importing at brainly.com/question/13663581.

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2 years ago

Acellus Businesses management

Kobotan [32]

Here is the answer

https://www.science.edu/Acellus/curriculum/career-technical-education-courses/lesson-lists/Business%20Management%20Curriculum.pdf

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2 years ago

When producers would have been willing to accept lower prices at various quantities produced than the market clearing price, the

krek1111 [17]

When producers would have been willing to accept lower prices at various quantities produced than the market clearing price, the differences are called?
PRODUCER SURPLUSE

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3 years ago