Why are professional associations interested in keeping professional standards high?

As of December 31, 2019, Armani Company’s financial records show the following items and amounts.

MrRa [10]

Answer:

Revenue (Consulting revenue + Rental revenue)=33000+22000=55000.

Operating expense (salaries expense+rent expense)=20000+12000=32000

Selling and administrative expense = 8000

Explanation:

Armani Company

Year end Income statement 2019

Revenue = 55000

less: Operating expense =(32000)

Gross Profit 23000

less :Selling and administrative expense = (8000)

Net profit 15000

Notes: Question should be mentioned the company nature of business so that we can identify company real business.

8 0

3 years ago

Jim has an annual income of $180,000. Jim is looking to buy a house with monthly property taxes of $140 and monthly homeowners i

MariettaO [177]

Answer:

$787,471.02

Explanation:

Given:

Jim's annual income = $180,000

Monthly property taxes = $140

Monthly homeowners insurance = $70

Monthly student loan payments = $178

Maximum front end DTI limit = 28%

Maximum back end DTI limit = 36%

Amortizing period = 30 years = 360 months

annual rate = 4.5% compounded monthly

Now,

Monthly salary = $\frac{\textup{Annual income}}{\textup{12 months}}$

or

Monthly salary = $\frac{\textup{180,000}}{\textup{12 months}}$

or

Monthly salary = $15,000

Maximum front end DTI limit

= (Maximum Monthly loan payment + monthly property taxes + monthly homeowner's insurance) ÷ Monthly income

0.28 × $15,000 = Maximum Monthly loan payment + $140 + $70

Maximum Monthly loan payment = $4,200 - $140 - $70

= $3,990

and,

Maximum back end DTI limit =

or

0.36 × $15,000 = Maximum Monthly loan payment + $140 + $70 + $178

or

Maximum Monthly loan payment = $5,400 - $140 - $70 - $178

= $5,012

Now,

The monthly payment = minimum of [ $3990, $5012 ]

therefore,

The monthly payment = $3,990

Thus,

The maximum amount of loan = Monthly payment × $[\frac{(1-(1+\frac{r}{k})^{-kn})}{(\frac{r}{k})}]$

here,

k = 12 when compounded monthly

n = 30 years

r = 4.5% = 0.045

The maximum amount of loan = $3,990 × $[\frac{(1-(1+\frac{0.045}{12})^{-12\times30})}{(\frac{0.045}{12})}]$

or

The maximum amount of loan = $787,471.02

8 0

3 years ago

A neighborhood sportswear store sells a pair of victoria sneakers for $40. due to the recent fitness craze, these shoes are in h

Anettt [7]

The current lot size of 235 is too large.

We use the given data to find the Economic Order Quantity or EOQ and then compare it to the lot size of 235.

Economic Order Quantity is used to arrive at the optimum purchase order for goods (in number of units) while minimizing ordering and handling costs.

The formula for calculating EOQ is:

Q = $\sqrt{2DS/H}$ ,

where :

Q is the order lot in number of units

D is the annual demand for the product

S is ordering cost per order (in $)

H is holding cost per unit (in $)

We can arrive at the annual demand for the product as follows:

Annual Demand = No. of units sold per week * No. of weeks the store operates

Annual Demand = 50*52 = 2600 units

Order cost = $20

Holding Cost = Holding Cost (in %) * Selling Price

Holding Cost = 20%*$40 = $8

Substituting the above values in the EOQ formula, we get,

Q = $\sqrt{(2*2600*20)/8}$ = 114.02 units.

Comparing the EOQ we just calculated and the given lot size, we arrive at the answer above.

8 0

3 years ago

A company builds a new plant and finances its construction by issuing stock. Which ratio is least likely to be affected, all els

Marta_Voda [28]

Answer:

a. Current ratio

Explanation:

Current Ratio is the least likely to be affected

The Current Ratio is given as

Current Ratio = [ Current assets ] ÷ [ Current liabilities ]

Now,

Building a new plant is a fixed asset for the company.

Thus, It will add to the Fixed assets

Since,

The Formula for current ratio is independent of the fixed assets

Therefore,

It will be least affected.

While,

Debt to equity ratio = [ Debt ] ÷ [ Equity ]

Debt to asset ratio= [ Total Debt ] ÷ [ Total Assets ]

Net fixed assets to total assets = [ Net fixed assets ] ÷ [ Total assets ]

in all the above relations, fixed asset will change the value of the total assets.

Hence,

They all will be affected

7 0

3 years ago

Identify the four major requirements necessary for a free-market system to operate.

g100num [7]

The free market is defined as the system in which the price of goods is agreed upon by consent between sellers and consumers, through the laws of supply and demand. Their requirements are the existence of free competition, (which in turn requires that among the participants of a commercial transaction there is no coercion, no fraud, or more generally, that all transactions are voluntary), complete universal information about the products and their prices, a free medium of exchange with a common currency, reasonable transaction costs, set of sellers and a set of buyers.

7 0

3 years ago