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3 years ago

15

Diego takes home $3800 per month from his job as an interior designer. if his only debt obligations are a car loan payment of $6

40 and a credit card payment of $180 every month, is he in danger of credit overload?

2 answers:

dem82 [27]3 years ago

4 0

Answer:

yes, because the sum of 640 and 180 is greater then 760

APEX

Roman55 [17]3 years ago

3 0

Yes, because the sum of 640 and 180 is greater then 760

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On January 1, 20Y8, Crabb & Co. sold land to ASP, Inc. and accepted a two-year, $500,000 face value note as payment. 6% inte

jeka94

Answer:

1. Discount

2. $449,298.47

3. $369,298.47 gain

4. land reduces by $80,000, investment increases by $449,298.47, reserves increases by $369,298.47

Explanation:

Question 1

Using the formula below

$Price=\frac{I_{1}}{1+r} +\frac{I_{2}+F}{(1+r)^{2}}$

where

I = interest rate, which is 6% of 500,000 = 30,000

F = Face value, 500,000

r = borrowing cost = 12%

Therefore, the price of the note at the time it was used for payment was

$Price=\frac{30,000}{1.12} +\frac{30,000+500,000}{(1.12)^{2}}$

= $449,298.47.

As the price is lower than the face value of the note, the note was issued at a discount.

Question 2

The fair market value of the note is $449,298.47, the compute price in question 1.

Question 3

The gain/loss on the sale of the land

= sale price - purchase price

= $449,298.47 - 80,000

= $369,298.47.

Question 4

The transaction would affect Crabb & Co's balance sheet as follows.

<em>Asset side:</em>

land reduces by $80,000

investment increases by $449,298.47

<em>Equity & liabilities side:</em>

reserves increases by $369,298.47

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Floral Shoppes has a new project in mind that will increase the accounts receivable by $19000, decrease accounts payable by $400

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Answer:

D. $21000

Explanation:

Calculation for the amount the firm should use as the initial cash flow attributable

Using this formula

Initial cash flow attributable to net working capital = Change in current assets - Change in current liabilities

Let plug in the formula

Initial cash flow attributable to net working capital=[(Increase in Account Receivable $19,000 + Decrease in inventory $2,000)] - ( Decrease accounts payable $4000)

Initial cash flow attributable to net working capital= (19,000 - 2,000) - [-4,000]

Initial cash flow attributable to net working capital=17,000 + 4000

Initial cash flow attributable to net working capital=$21,000

Therefore the amount the firm should use as the initial cash flow attributable to net working capital when it analyzes this project will be $21,000

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What is the most important thing about meeting new contacts? A. Building your Rolodex B. Overcoming shyness C. Getting referrals

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<span>The answer is A . Forming relationships is the most important thing about meeting new contacts.</span>

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4 years ago

A country that is industrially underdeveloped, agrarian, has a subsistence society with rural populations, and has extremely low

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Treptron Inc., a software company, has a standing plan that details the specific set of steps to be undertaken when an employee

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Answer:

c. procedure

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