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2 years ago

Nick and Matt are the partners in a local health food store. They

Business

1 answer:

Grace [21]2 years ago

8 0

a. The amount that each invested is: Nick $21,900; Matt $51,100.

b. Percent of the business owned by Matt is 70%.

a. Amount invested by each

First step is to calculate the total parts

Total parts=3x + 7x

Total parts=10x

Second step is to calculate the cost per part(x)

Cost per part(x)=73,000/10

Cost per part(x)=7,300

Third step is to calculate the money invested by Nick and Matt

Money invested by Nick=3x

Money invested by Nick=3×7,300

Money invested by Nick=$21,900

Money invested by Matt=7x

Money invested by Matt=7×7,300

Money invested by Matt=$51,100

b. Percent owned by Matt

Using this formula

Percent owned by Matt =Part owned by matt/Total part

Let plug in the formula

Percent owned by Matt =7x/(3x+7x)

Percent owned by Matt=7x/10x

Percent owned by Matt=0.7×100

Percent owned by Matt =70%

Inconclusion the amount that each invested is Nick $21,900; Matt $51,100 and the percent of the business owned by Matt is 70%.

Learn more here:

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belka [17]

6 Months can be a life insurance policy normally be backdated from the date of the application.

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1 year ago

The Card Shoppe needs to maintain 18 percent of its sales in net working capital. Currently, the store is considering a four-yea

mylen [45]

Answer:

$56,520

Explanation:

As per given data

Year Sales Working Capital 18%

0 $279,000 ($50,220)

1 $308,000 ($5,220)

2 $314,000 ($1,080)

3 $314,000 $0

4 $314,000 $56,520

As the sales value of year 2, 3 and 4 are same, as capital is adjusted in year 2 and company has equal working capital required in year 3, years 4 is the last year of the project so, working capital will be recovered from the project

Net Working capital will be reimbursed at the end of the project. The accumulated value of investment in working capital will be recorded as cash inflow in the analysis.

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2 years ago

Bank A quotes a bid rate of $0.300 and an ask rate of $0.305 for the Malaysian ringgit (MYR). Bank B quotes a bid rate of $0.306

Artemon [7]

Answer: $1639.3

Explanation:

From the question, we are informed that Bank A quotes a bid rate of $0.300 and an ask rate of $0.305 for the Malaysian ringgit (MYR) and that bank B quotes a bid rate of $0.306 and an ask rate of $0.310 for the ringgit.

The profit for an investor that has $500,000 available to conduct locational arbitrage goes thus:

Purchasing Malaysian ringgit (MYR) from bank A at the ask rate will be:

= $500,000/$0.305

= 1,639,344.3

Selling the Malaysian ringgit (MYR) at bank B based on the ask rate will be:

= 1,639,344.3 × 0.306

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3 years ago

Assume a company has a cost of capital that is greater than zero and has cash flows related to the changes in net working capita

Otrada [13]

Answer:

A. Decrease

Explanation:

In investment appraisal with the method of Net Present Value, the bone of contention and the central matter is the TIME VALUE OF MONEY.

In the above scenario, the initial working capital was 100% released in proportions of 40%, 40% and 20%, throughout the 3 years of the project. However, if the reverse had been the case, i.e. parting with more cash now and the requirement of working capital now becomes: Year 0 = -10,000, Year 1 = - 10,000, Year 2 = -10,000, Year 3 = +30,000; the NPV would definitely shrink because the value of 10,000 each in Years 0-2 would not be the same when it is recovered from the project in year 3. The value will be smaller and hence the NPV of the project would have decreased as a result of the time value of money.

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3 years ago

Last year, Stumble-on-Inn, Inc. reported an ROE of 19 percent. The firm's debt ratio was 60 percent, sales were $34 million, and

Sonja [21]

Stumble-on-Inn, Inc.'s net income for last year is <u>$3,359,200</u>.

<h3>Data and Calculations:</h3>

ROE (Return on Equity) = 19%

Debt ratio =60%

Sales = $34 million

Capital intensity = 1.30 times

Assets = $44.2 million ($34 million x 1.30)

The Total Debt = $26,520,000 ($44,200,000 x 60%)

The Equity = $17,680,000 ($44,200,000 - $26,520,000)

The Net income = $3,359,200 ($17,680,000 x 19%)

Thus, Stumble-on-Inn, Inc.'s net income for last year is <u>$3,359,200</u>.

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