Kali owe fiduciary duties in this transaction to no one.
What are fiduciary duties?
A fiduciary duty involves actions taken in the best interests of another person or entity. Fiduciary duty describes the relationship between an attorney and a client or a guardian and a ward. Fiduciary duties include duty of care, loyalty, good faith, confidentiality, prudence, and disclosure.
It has been successfully argued that an employee may have a fiduciary duty of loyalty to an employer.
Fiduciary duty is one of the highest and most respected obligations. Fiduciaries are paid to work. However, they are also tasked with the responsibility of being the eyes and ears of their client, working to secure the client’s desired outcomes without any promise of additional compensation for doing so.
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As James markets his bike tires to sporting goods manufacturers, what trade credit terms would be the most favorable to him, not the manufacturers?
Multiple Choice
Net 60
Net 30
Net 15
2/10, Net 60
2/10, Net 30
The trade credit terms that would be the most favorable to James and not the manufactures is Net 30.
What are the most favorable credit terms?The most favorable credit terms to a supplier are those that would see the purchaser pay what they owe, as soon as possible. The most favorable to the purchaser are those where they can take a while to pay, and still get a good discount.
In this case, James is a supplier to the sporting goods manufacturers and so the most favorable credit terms to him would be those with the shortest number of days which is Net 30.
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Which major promotion category uses catalogs, telephone marketing, kiosks, and the Internet?
A) sales promotion
B) direct marketing
C) horizontal diversification
D) public relations
Direct marketing helps businesses cut
costs. Media for direct marketing include
face-to-face sales, direct mail, catalogue
marketing, telemarketing, TV, and kiosks.
Delivering individualized and frequently
interactive promotional materials to specific consumers through channels like mail, catalogues, the Internet, e-mail, telephone, and direct-response advertising is known as direct marketing.
Direct marketing is a style of advertising that involves communicating with your target market directly to offer information about your business, product, or service.Some examples of direct marketing techniques include telephone marketing,emails, online ads, flyers,database marketing, promotional letters,newspapers,and outdoor advertising.
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kara is a lender who is working with prospective buyer, stan. what does kara ask sam to provide to show his work history and earning information?
Kara asks sam to provide Paystub to show his work history and earning information.
It permits the lender to verify the employment indexed at the applicant's mortgage application. Numerous parties have a function in finishing parts of the verification of employment form.
A mortgage Estimate is a three-web page form that you receive after making use of a mortgage. The Loan Estimate tells you vital details about the mortgage you have requested. The lender must offer you a mortgage Estimate within 3 enterprise days of receiving your utility.
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Do we really have a free market system???? Supply and Demand!!!! Should we be able to get whatever we want!!!!!
(One paragraph answer)
The US has a free market system, that is, there is less state control over the economy.
What is the free market system?It corresponds to an economic system that underlies capitalism, that is, economic exchanges are carried out between individuals and companies with the objective of obtaining profitability, through the private sector.
The free market system has as benefits the greater autonomy of citizens to carry out voluntary exchanges that directly influence the economic flow of the country.
In this system, economic agents are free, that is, the economic laws of supply and demand occur naturally, that is, they are directly influenced by the quantity of goods and services produced and the purchasing power of the population.
Therefore, the free market is an independent, decentralized system whose demand and supply are influenced by economic production and money transfer, without government control.
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Pro-forma FY+1 EPS for Amazon Inc. is expected to be: Review Later $45.71 $36.77 $50.00 $130.33
Option B. The Pro-forma FY+1 EPS for Amazon Inc. is expected to be 36.77 based on the calculation.
How to solve for the Pro-forma FY+1 EPSThe normalized net earnings = $23688
normalized net earnings of snap = -581
proforma adjustment = - 3134
Total proforma earning = 19973
Next we have to solve for the cost of acquisition
shares of snap * price of snap * (1 + premium)
= 1734 * 44.29 (1 + 20%)
cost of acquisition = $92158.63
Next is the cost financed by equity
= $92158.63 * 80 percent
= 73726.91 dollars
Next is to solve for the new price of the equity issue
= 3099.4 * (1 - 50%)
= 2944.43 dollars
Next is the number of new shares 73726.91 dollars / 2944.43
= 25.04
Total share after acquisition
shares outstanding + new shares
= 518 + 25.04
= 543.04
The EPS would be the next to solve for
this is gotten by the formula
total proforma / number of shares
= 19973 / 543.04
= 36.78
Hence the Pro-forma FY+1 EPS is going to be: $36.77
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complete question: check attachment
Isaiah, who is single, received $52,000 of qualified business income from a partnership. Isaiah's taxable income prior to the calculation of the QBI deduction is $50,000. This amount includes: $5,000 in long-term capital gains. $450 in qualified dividends. How much is Isaiah's QBI deduction?
Isiah's QBI deduction, based on the qualified business income, the taxable income and the long - term capital gains, is $8, 910.
How to find the QBI deduction?The qualified business income deduction is 20% of the amount that a person has from their income before the QBI deduction is calculated, over their long term capital gains and qualified divided.
In other words, the qualified business income deduction for Isaiah can be found by the formula:
= (Income before QBI deduction - long term capital gain - qualified dividend) x 20%
= (50, 000 - 5, 000 - 450) x 20%
= $8, 910
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In 100 words or fewer explain:
As a financial advisor, how will you get new clients?
As a client, how would you choose a financial advisor?
A financial advisor can get new client through the qualities and skills they posses and a client can choose a financial advisor when the client is satisfied that the financial advisor is someone that is qualified to give financial advises.
Who is a financial advisor?
A financial advisor is person whose job is to advice someone on how to effectively manage their resources as well as finances so as to prevent running into debt or financial mismanagement.
A financial advisor can tend to get a new client by advertising themselves or showcasing the type of skills they possess as well as how they can effective advice and help people to manage their finances.
A client can tend to choose a reliable financial advisor by checking whether the advisor is a professional or a person that is qualified to be a financial advisor as well as a verifying if the advisor is a person that can help to advice people on how to effectively manage their finances.
Therefore the a financial advisor help to advices people on how to manage their finances as well as investment.
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essence of macroeconomics in an economy
The main essence of macroeconomics in an economy are help to focus on the performance of economies based on changes in economic output, inflation, interest and foreign exchange rates and the balance of payments.
What do we know as macroeconomics?Basically, a macroeconomics means the branch of economics that studies how an overall economy such as markets, businesses, consumers, and governments generally behave. The branch "macroeconomics" examines an economy-wide phenomena such as inflation, price levels, rate of economic growth, national income, gross domestic product (GDP) and changes in unemployment.
In other way, it is also the branch of economics that deals with the structure, performance, behavior and decision-making of the whole, aggregate or full economy.
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TC= Q2 + 120 Q + 400. The level of output where average cost is minimized for Hilltop Corp. is
The level of output where average cost is minimized for Hilltop Corp. is 20
How to solve for the output levelAverage cost is the production cost calculated as the product of the total cost (TC) and the total output (Q), or, mathematically, AC = TC/Q.
We have the total cost function as
TC= Q² + 120 Q + 400.
Average cost AC = TC / Q
= [tex]\frac{Q^2 + 120 Q + 400}{Q}[/tex]
dAC/dQ = 1 + 0 - 400 / Q² = 0
we would have 400 = Q²
Take the square root of the two sides
√400 = Q
20 = Q
Hence the level of output for Hilltop corp is given as 20
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What type of interest rates will a person with a credit score in the low to below 600 range be offered for a loan?
A. zero interest rates
B. will never get a loan
C. relatively high interest rates
D. relatively low interest rates
The relatively low interest rates interest rates will a person with a credit score in the low to below 600 range be offered for a loan.
So, if you're a borrower, the interest rate is the amount you pay for borrowing money, the expressed as a percentage of the entire loan credit amount. For example, if you borrow $100 at 5% interest, you will pay back $105 to the lender. The lender will earn by $5. Throughout your life, you may develop a variety of the interests. Every loan has its own interest rate, which is determines the total amount owed.
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please help me find the last part of this question please
1. The percentage improvement needed in the supply chain strategy to for profit to improve to $25,000 is a 25% decrease in supply chain cost so that material cost becomes $45,000.
2. A 15% increase in sales is required to generate a profit of $25,000, making the sales revenue to become $115,000.
How are the percentages determined?For the supply chain improvement, to increase profit to $25,000, Hau Lee must reduce the cost of materials to $45,000 ($60,000 - $15,000).
This cost reduction translates to a 25% cost improvement ($15,000/$60,000).
For the sales strategy, Hau Lee can apply the break-even analysis to compute the sales revenue with the target profit.
Hua Lee Furniture, Inc.
Income Statements Current % Projection 1 % Projection 2 %
Sales $100,000 100 $100,000 100 $115,000 100
Cost of materials 60,000 60 45,000 45 60,000 52
Production costs 20,000 20 20,000 20 20,000 17
Fixed costs 10,000 10 10,000 10 10,000 9
Profits $10,000 10 $25,000 25 $25,000 22
Projection 1:
Required improvement in dollars to make profit of $25,000 = $15,000 ($25,000 - $10,000)
Improvement translates to 25% ($15,000/$60,000).
Projection 2:
Required improvement in dollars to make profit of $25,000 = $15,000 ($25,000 - $10,000)
Contribution margin ratio = 30.4% ($35,000/$115,000 x 100)
Break-even Sales = Fixed Costs + Target Profit/Contribution margin ratio
= $35,000/30.4%
= $115,000
Improvement in sales strategy = 15% ($15,000/$100,000 x 100)
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You need to revise your budget to meet your short-term
goal of buying a new computer. You will need to budget
$50 a month.
How will you revise your budget to meet this goal?
I could increase my discretionary spending to $365, which would allow me to spend $50 per month on my computer.
I could also reduce other expenses to compensate for the change. For example, I could replace my entertainment budget with a computer budget.
Make sure to include the following :
creating a new budget item of $50 for a computer
reducing one or more areas by $50 to account for the new budget item
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Answer:
Sample Response -
I could increase my discretionary spending to $365, which would allow me to spend $50 per month on my computer.
I could also reduce other expenses to compensate for the change. For example, I could replace my entertainment budget with a computer budget.
Explanation:
Edge 2023
If a firm decides to eliminate a product line that produces a yearly net loss of $21000 its yearly net income
If a firm decides to eliminate a product line that produces a yearly net loss of $21000 its yearly net income A. will increase by $21,000 only if it can eliminate all of the fixed costs associated with that product line.
What happens when a company eliminates a loss-making product line?When a company eliminates a product line that has been making losses, they stand a chance to increase their net income by the amount of net losses that the product line was making.
However, they can only make this increase net income if and only if they can eliminate the fixed costs that the product line incurred because these costs would have been incurred already and would reduce net income unless eliminated.
Options for this question are:
A. will increase by $21,000 only if it can eliminate all of the fixed costs associated with that product line.B. will increase by $21,000 only if it can eliminate all of the variable costs associated with that product line.C. will automatically increase by $21,000.D. will decrease unless the firm can eliminate all of the fixed costs associated with that product line.Find out more on eliminating product lines at https://brainly.com/question/24278526
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Eugene Torres works in a shared role for Multiglass Computers. He works in both the programming and the research departments for the company and splits his time equally in both roles. Eugene is paid $12 per hour in the programming department and $16 per hour in the research department. When he works overtime in the research department, what is his pay rate? Multiple Choice $18.00 per hour $36.00 per hour $32.00 per hour $24.00 per hour
In the research section, hourly pay is $24. Thus, if he puts in more time at the research department.
How to calculate overtime pay =
Hourly rate of pay x 1.5
= $16 X 1.5 equals
= $24 per hour.
The amount of additional time owed to each employee during a pay period is what is known as overtime compensation.
The research division compiles and analyses consumer and target market data. The work of the creative department and account management is supported by this data. The selection and placement of advertisements in print and broadcast media is a specialty of media planners.
It is frequently both efficient and successful for a firm to seek the services of independent marketing facilitators because marketing functions need a great deal of experience. These are businesses and consultants whose sole or main duty is to handle marketing-related tasks.
All or a portion of these tasks are internal in many larger businesses. However, most businesses only need occasional or part-time assistance from marketing facilitators, thus this is neither required nor justifiable.
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Which of the following are NOT the methods to achieve a
Continuous Flow in your business process?
A Prepare for Production Takt vs. Consumer Takt
B Push Production
C CONWIP
D Kanban
E None of the given choices
The methods to achieve a Continuous Flow in your business process are none of the given choices among the following options.
What is the flow of business?The term company refers to an organization or business entity engaged in commercial, industrial, or professional activity. The purpose of an enterprise is to organize some kind of economic production (of goods or services). A business can be a for-profit or non-profit organization that serves a charitable mission or promotes a social cause. Companies vary in size and scale from sole proprietorships to large international corporations.The business also refers to the efforts and activities of individuals who produce and sell goods and services for profit.examples of business are:amazonappleMicrosoftWalmartto know more about business refer to
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Janeen looks at David, Shannon, and Consuela with a rueful smile.
"You know, this whole process hasn't been easy for me," she admits. "This business is my
baby, and it's been difficult to give up control. I started out by trying to do everything
myself, and when I saw that wasn't going to work out, I took my first baby steps."
David laughs. "Yeah, delegation hasn't been Janeen's strong suit, but we've come a long
way."
Consider the statements below and drag them to the appropriate level of delegation, from
the lowest level of delegation at the top, to the highest at the bottom. When you are done,
click Submit?
Here's what I need you to do. (The work which is assigned and clear instructions are also given about what is to be done. There is no freedom to act independently.)
- Look into this and give me your input. Then, I'll let you know what I decide. (Some inputs are taken but the final decision is taken by the superior.)
- Look into this and let me know what you think, and we'll figure it out together. (Decision making is shared here.)
- Look into this and let me know what you decide, but make sure that I give you the go-ahead before you proceed. (Decision can also be taken by the subordinate but the final approval will be still comes from the superior.)
- Look into this and handle it as you see fit. No need to check back with me. (Complete freedom is given to decide on the course of action with waiting for approval from the superior is also there.)
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a popular haberdashery could take a customer's measurements in the afternoon and produce a dandy suit ready for customer pickup by next morning. their competitive priority was:
A popular haberdashery could take a customer's measurements in the afternoon and produce a dandy suit ready for customer pickup by next morning. their competitive priority was: delivery speed.
A customer is the recipient of a terrific, provider, product or an idea - received from a supplier, supplier, or dealer through a financial transaction or change for cash or a few different treasured attention
A customer is normally defined as someone who buys an amazing, product, or carrier. extra specifically, clients are people or businesses currently purchasing, have purchased, or can be interested by purchasing a product or service from another person or corporation.
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Which of the following duties is not a permitted activity for an unlicensed personal assistant?
a. Negotiate agreements regarding commission structuring.
b. Secure documents that are public information from the courthouse and other sources available to the public.
c. Have keys made for company listings.
d. Write advertisements and promotional materials with the approval of the licensee and supervising broker.
Negotiate agreement regarding commission structuring is not a permitted activity for an unlicensed personal assistant.
An unlicensed personal assistant would be permitted to host an open house while the licensed associate is showing another listing and try to negotiate an offer complete contract forms after the licensed associate has captured the important things like price and closing date show a property to a potential buyer when the licensed associate is busy and negotiate price and terms for their offer.
Unlicensed assistants cannot do licensed activities, such as negotiating, providing advise or signing contracts.Thus, option (a) is correct.
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Analyse the effect of a rise in the price of tea on the demand for milk and the demand for coffee.
Due to the fact that tea and coffee are alternatives for one another, if the price of tea were to rise, so would the demand for coffee.
Effect of a rise in the price of tea:Products like tea and coffee are examples of substitute goods since they can be used in lieu of one another to satisfy a certain need. The price of a substitute good directly affects demand for a certain commodity. For instance, if the price of a replacement good (like coffee) rises, demand for the given commodity (like tea) will increase since tea will be comparably less expensive than coffee.
For instance, if the cost of tea is 20 rupees and the demand for coffee, a substitute, is 10 rupees. Currently, the price of tea is rising steadily by 30, 40, and 50 cents, while the demand for coffee is also rising steadily by 20, 30, and 40 cents.
If coffee and tea are comparable products and the price of coffee rises, people will drink less coffee and more tea. Tea will so become more popular as a result.
As a result, if the price of coffee rises, the price of tea will also increase (due to excess demand). Additionally, since tea is a coffee alternative, a rise in the price of coffee will also result in a rise in the demand for tea.
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Which of these are long-term impacts of having a good credit history?
The lowest interest rates and costs for new loans and lines of credit are more likely to be available to you if you have a high credit score, and if you're looking for a mortgage, you may be able to save up to 1% in interest.
You have good credit if your credit score is high. You have terrible credit if your credit score is low. Scores for various businesses vary. Low scores are in the 300 range.
You are more likely to get approved for loans with the best terms, such as lower interest rates, larger loan amounts, and possibly fewer fees, the higher your credit score.
Your financial life depends heavily on your credit score. It is necessary for less obvious things like signing up for cellular phone service, renting a car, and possibly even landing a job, in addition to the more obvious ones like getting approved for a loan or credit card.
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The following merchandise transactions occurred during December for two different companies: Rippen
and Burnen. Both companies use a perpetual inventory system.
On December 3, Rippen Corporation sold merchandise on account to Burnen Corp. for $480,000, terms
2/10, n/30. This merchandise originally cost Rippen $320,000.
On December 8, Burnen Corp. returned merchandise to Rippen Corporation for a credit of $30,000.
Rippen returned this merchandise to inventory at its original cost of $20,000.
December 12, Burnen Corp. paid Rippen Corporation for the amount owed.
Required:
a. Prepare the journal entries to record these transactions on the books of Rippen Corpo
The accounting entries for Rippen Corporation is recorded as follows:
December 3,
DR Accounts Receivable (Burnen Corp.) $480,000
CR Sales $480,000
DR Cost of Goods Sold $320,000
CR Inventory $320,000
December 8,
DR Sales Return $30,000
CR Accounts Receivable $30,000
DR Inventory $20,000
CR Cost of Goods Sold $20,000
December 12,
DR Cash $441,000
DR Credit Discount $9,000
CR Accounts Receivable $450,000
What is Journal Entry?A journal entry is recorded for the transactions of a company in the relevant period, the entry that is recorded is also known as the double entry. These journal entries are then used to prepare T-Accounts, an then trial balance is made and ultimately income statement and balance sheet are made.
The transaction includes a discount of 2% as credit discount for the payment being made within 10 days.
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Can someone help me with this question please and Thank you
Total Assets ($118,100) = Total Liabilities and Stock holders Equity ($118,100)
BALANCE SHEET
CURRENT ASSETS:
CASH 45,700
ACCOUNTS RECBLE 72,400
TOTAL CURRENT ASSETS 118,100
NON-CURRENT ASSETS:
TRUCK
ROTO TILLER
DISPLAY EQUIPMENT
CASH REGISTER
TOTAL NON-CURRENT ASSETS 0
A) TOTAL ASSETS 118,100
CURRENT LIABILITIES:
ACCOUNTS PAYABLE 94,600
ACCURED EXPENSES
TOTAL CURRENT LIABILITIES 94,600
NON-CURRENT LIABILITIES:
BANK LOAN
TRUCK LOAN
TOTAL NON-CURRENT LIABILITIES 0
STOCK HOLDERS EQUITY:
COMMON STOCK/ OWNER'S CAPITAL 23,500
RETAINED EARNINGS
TOTAL STOCK HOLDERS EQUITY 23,500
B) TOTAL LIABILITIES & STOCKHOLDERS EQUITY 118,100
A = B,
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Which of the following expenses is NOT deductible when a taxpayer uses the simplified method of calculating the home-office deduction?
The simplified method of computing home office expenses limits the number of home office expenses allowed to a fixed amount regardless of the amount of business income or the size of the home office.
How do you calculate home office deductions?A business owner can calculate the home office deduction in two ways: regular and simplified. The regular method would require you to use Form 8829 to calculate your deduction, which would include figures for the area of your home and the total hours it was used for business purposes, your business income, and other business expenses.
If you itemize deductions and use the simplified method for a taxable year, you can deduct home expenses that would otherwise be deductible as itemized deductions on Form 1040 or 1040-SR, Schedule A, without reducing these expenses by the amounts allocable to the simplified method.
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Answer: Depreciation
Explanation: If a taxpayer elects to use the simplified method of determining the home-office deduction, neither depreciation nor any actual expenses other than those not related to the use of the home, may be deducted. (Business expenses not related to the taxpayer’s use of the home continue to be deductible.)
What’s the forecasted EBIT based on the information below? -
Revenues: 8,100
Cost of goods sold: 4,900
SG&A: 1,500
Depreciation: 400
Interest: 150
Taxes: 390
The forecasted EBIT based on the information given, equals to the amount of $1,300.
What is the meaning of Earnings before interest and taxes?In accounting, the earnings before interest and taxes refers to a company's net income before income tax expense and interest expenses are deducted, its also referred to as operating earnings, operating profit, and profit before interest and taxes. It is an indicator of a company's profitability. It is calculated as revenue minus expenses excluding tax and interest.
As a financial metrics, the earnings before interest and taxes is used to analyze the performance of a company's core operations without the costs of the capital structure and tax expenses impacting profit.
EBIT = Revenue − COGS − Operating Expenses
EBIT = 8100 - 4,900 - (1,500 + 400)
EBIT = 8100 - 4,900 - 1,900
EBIT = $1,300
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why Nike is a competitor to Decathlon? and i need a website for this ìnormation
Based on the available information, Nike is a competitor to Decathlon because both brands are manufacturers of sports wears.
Similarities between Nike and DecathlonFrom the business activities of Nike and Decathlon, it has been revealed that both brands major in the production of Sportswear.
The sportswear produced by Nike and Decathlon includes but is not limited to the following:
BootsSnowboardsFootballBasketballWinter JacketsHelmets, etc.These two brands are considered competitors because they both have the same consumers to patronize their products.
Also, since both brands are in the same line of business, they are considered to be in the same industry.
Hence, in this case, it is concluded that the correct answer is that both brands are manufacturers of sports wears.
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Suppose that 17,000 is deposited for seven years awt 3% APR calculate the nearest interest earned if interest is compounded monthly round your answer to the nearest cent
The interest earned if 17,000 is deposited for 7 years with a 3% APR compounded monthly is $3,967,03.
What is the interest earned?If the account the money is deposited is compounded monthly, it means that both the amount that was deposited and the interest that has already accrued increases in value once a month over the seven years investment period.
The interest earned is the difference between the amount deposited and the future value of the money in the account.
Interest earned = future value - amount deposited.
The formula that can be used to determine the future value of the amount deposited is:
FV = P(1 + r)^(m x t)
Where:
FV = future value P = amount deposited r = interest rate = APR / number of compounding = 3% / 12 = 0.25%m = number of compounding = 12 t = number of years = 7FV = 17,000 x (1 + 0.0025)^(12 x 7)
FV = 17,000 x (1.0025)^84 = $20,967.03
Interest earned = $20,967.03 17,000 = $3,967,03
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11. Explain how numbers are sorted in consecutive numbering, terminal-digit numbering, and middle-digit numbering. (Obj. 5)
Consecutive numbering is used to organize the numbers from lowest to highest without interruption. The last few digits of a sequence are used in terminal-digit numbering to define the main key for sorting.
What is consecutive numbering?Generally, The term "consecutive numbers" refers to a series of numerical values that proceed one after the other without interruption in the ascending order of size. Examples of consecutive numbers include the following: 1, 2, 3, 4, 5, 6, and so on.
The use of consecutive numbering ensures that the numbers are presented in ascending order, starting with the lowest and working their way up to the highest.
In conclusion, When terminal-digit numbering is used, the primary key for sorting is determined by using the most recent few digits of a sequence.
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A plan presenting financial forecasts for the business
A plan presenting financial forecasts for the business profit and loss statement, cash flow statement, balance sheet, cash flow forecast, and budget for expenses should all be included in the financial component of your business plan.
A financial forecast outlines the measures that must be taken in order to earn future income and pay for future expenses, whereas a financial forecast is an estimation or projection of expected future income or revenue and expenses. A financial plan can also be thought of as what a person or business intends to do with income or revenue acquired.
A financial plan is a road map created now that can be followed over time, whereas a financial forecast is a projection or estimate of future outcomes predicted today. Both processes aim financial activity toward the future.
For a corporation to succeed, financial forecasting is essential. A business must have a realistic estimate of the amount of revenue it expects to generate over a specific period of time in order to manage working capital and cash flow successfully.
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Using the definition of the unemployment rate, is a decrease in unemployment necessarily a good thing for a nation?
A decrease in unemployment is always a good thing in a country with healthy population increase. A decrease in unemployment is not a good sign, when the country is facing steep population decline.
The definition of unemployment rate is a measure of unemployed labor force actively looking for employment versus the total labor force in that country or nation.
As more people are actively employed, it means the economy is strong and showing signs of growth. The lower the number of unemployment rate, the stronger the economic indicator, including steady inflation, good interest rates and so on.
Depending on how big the decrease in unemployment versus the total amount of the workforce, generally a decrease in unemployment is regarded positively.
It is said that a good or healthy level of unemployment in any given country should be between 4 to 6%, as any lower would mean less productivity and higher cost.
Economists have theorized that extremely low unemployment rates will put pressure on prices of goods, due to increased demands caused by the increases in disposable income of its citizens, and in the end results in higher rate of inflation.
Others have surmised that low unemployment level is making employee recruitment and retention difficult since there's not a lot of people left in the job market, and companies have to be proactive in their recruitment and retention to attract people to work for them.
Extremely low levels of unemployment is also theorized as a sign of looming recession.
In the US alone, prior to the pandemic there are around 6 to 7% unemployment; however during the pandemic, it reached highs of more than 12%, and today eases at around 4%.
Therefore by the definition of unemployment rate, the cycle follows through that higher level of unemployment meant the economy is unhealthy, as spending power and disposable income diminished.
At lower unemployment levels, the economy shows strong signs of recovery as inflation and interest rates were manageable. At the lowest rates of unemployment this year, recession looms and inflation are higher than normal, creating fears of recession.
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Over the past year, Ionia’s money supply increased by $5 billion, $6 billion in bonds were sold to the public, an unused military base was sold for $1 billion, and the government spent $20 billion.
1. determine the amount of Ionia’s budget deficit or surplus
2. determine the amount of Ionia’s tax revenue for the year
According to the available data, Ionia experienced a budget deficit The $9 billion budget surplus or deficit for Ionia. Ionia received $11 billion in tax income last year.
What was Lonia 's Budget ?1. According to the information provided, Ionia had a budget deficit since spending exceeded income.
2. The surplus or deficit in Ionia's budget
Budget surplus or deficit = $1 billion +$3 billion + $5 billion
$9 billion, whether in deficit or excess.
3. Tax collection
$20 billion in tax revenue - ($1 billion, $3 billion, and $5 billion)
Tax revenue = $20 billion- $9 billion,
$11 billion in tax revenue
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