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2 years ago

For which buyer would a lender most likely approve a $200,000 mortgage?

Business

2 answers:

Yakvenalex [24]2 years ago

8 0

Available options:

a person with a credit score of 800 with a large amount of debt who has recently switched to a lower-paying job
a person with a credit score of 760 with a small amount of debt who has had steady employment for many years
a person with a credit score of 650 with a large amount of available credit who has a low-paying, but steady job
a person with a credit score of 600 with a small amount of available credit who has recently switched to a high-paying job

Answer:

2) a person with a credit score of 760 with a small amount of debt who has had steady employment for many years

A credit score higher than 660 is considered good, above 720 is very good and above 800 is extremely good. Banks will usually lend money to individuals with a good credit score, but the interests and other specific terms might not be as good as for individuals with very good or excellent credit scores.

The problem with the individual in option 1 is that he/she already has a lot of debt and probably has been recently fired and is switching to a lower paying job. The combination of less income plus high monthly payments is never good. You must remember credit scores are based on historical data, and things can change very quickly.

While the individual in option 2 has a very good credit score, doesn't have a lot of debt and has been steadily employed for several years, this is a really combo for banks.

jolli1 [7]2 years ago

5 0

I think the answer is B: a person with a credit score of 760 with a small amount of debt who has had steady employment for many years.

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Peppercorn Inc. has outstanding nonconvertible preferred stock (cumulative) that pays a quarterly dividend of $1.00. If your r

Morgarella [4.7K]

Answer:

Quarterly dividend = $1.00

Required rate of return per annum = 8% = 0.08

Quarterly rate of return = 0.08/4 = 0.02

Current market price = Quarterly dividend

Quarterly required rate of return

= $1.00

0.08

= $12.5

The amount to pay for 1,000 shares = $1.25 x 1,000 = $12,500

Explanation:

The current market price is calculated as quarterly dividend paid divided by quarterly required rate of return. Then, we will multiply the current market price by the number of shares in order to determine the total amount to pay for the shares.

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2 years ago

Thoro Clean, a firm providing house-cleaning services, began business on April 1. The following accounts in its general ledger a

natta225 [31]

Answer:

Thoro Clean

a. Using the accounting equation, record each of the transactions in columnar format:

April 1

Cash $11,500 + Accounts Receivable + Supplies + Prepaid Van Lease + Equipment = Accounts Payable + Notes Payable + Common Stock $11,500 + Retained Earnings

April 2

Cash $11,500 - $2,850+ Accounts Receivable + Supplies + Prepaid Van Lease $2,850 + Equipment = Accounts Payable + Notes Payable + Common Stock $11,500 + Retained Earnings

April 3

Cash $11,500 - $2,850 + $10,000 + Accounts Receivable + Supplies + Prepaid Van Lease $2,850 + Equipment = Accounts Payable + Notes Payable $10,000 + Common Stock $11,500 + Retained Earnings

April 3

Cash $11,500 - $2,850 + $10,000 - $3,500 + Accounts Receivable + Supplies + Prepaid Van Lease $2,850 + Equipment $5,500 = Accounts Payable $2,000 + Notes Payable $10,000 + Common Stock $11,500 + Retained Earnings

April 4

Cash $11,500 - $2,850 + $10,000 - $3,500 - $4,300 + Accounts Receivable + Supplies $4,300 + Prepaid Van Lease $2,850 + Equipment $5,500 = Accounts Payable $2,000 + Notes Payable $10,000 + Common Stock $11,500 + Retained Earnings

April 7

Cash $11,500 - $2,850 + $10,000 - $3,500 - $4,300 - $350 + Accounts Receivable + Supplies $4,300 + Prepaid Van Lease $2,850 + Equipment $5,500 = Accounts Payable $2,000 + Notes Payable $10,000 + Common Stock $11,500 + Retained Earnings - Advertising Expense $350

April 21

Cash $11,500 - $2,850 + $10,000 - $3,500 - $4,300 - $350 + Accounts Receivable $3,500 + Supplies $4,300 + Prepaid Van Lease $2,850 + Equipment $5,500 = Accounts Payable $2,000 + Notes Payable $10,000 + Common Stock $11,500 + Retained Earnings - Advertising Expense $350 + Cleaning Fees Earned $3,500

April 23

Cash $11,500 - $2,850 + $10,000 - $3,500 - $4,300 - $350 - $1,500 + Accounts Receivable $3,500 + Supplies $4,300 + Prepaid Van Lease $2,850 + Equipment $5,500 = Accounts Payable $2,000 - $1,500 + Notes Payable $10,000 + Common Stock $11,500 + Retained Earnings - Advertising Expense $350 + Cleaning Fees Earned $3,500

April 28

Cash $11,500 - $2,850 + $10,000 - $3,500 - $4,300 - $350 - $1,500 + $2,300 + Accounts Receivable $3,500 - $2,300 + Supplies $4,300 + Prepaid Van Lease $2,850 + Equipment $5,500 = Accounts Payable $2,000 - $1,500 + Notes Payable $10,000 + Common Stock $11,500 + Retained Earnings - Advertising Expense $350 + Cleaning Fees Earned $3,500

April 29

Cash $11,500 - $2,850 + $10,000 - $3,500 - $4,300 - $350 - $1,500 + $2,300 + $1,000 + Accounts Receivable $3,500 - $2,300 + Supplies $4,300 + Prepaid Van Lease $2,850 + Equipment $5,500 = Accounts Payable $2,000 - $1,500 + Notes Payable $10,000 + Common Stock $11,500 + Retained Earnings - Advertising Expense $350 + Cleaning Fees Earned $3,500 + Dividends $1,000

April 30

Cash $11,500 - $2,850 + $10,000 - $3,500 - $4,300 - $350 - $1,500 + $2,300 - $1,750 - $255 + Accounts Receivable $3,500 - $2,300 + Supplies $4,300 + Prepaid Van Lease $2,850 + Equipment $5,500 = Accounts Payable $2,000 - $1,500 + Notes Payable $10,000 + Common Stock $11,500 + Retained Earnings - Advertising Expense $350 + Cleaning Fees Earned $3,500 + Dividends $1,000 - Wages $1,750 - Gasoline $255

b. Use Journal entries to record the transactions:

DATE DESCRIPTION DEBIT CREDIT

April 1 Cash Account $11,500

Common Stock $11,500

To record Randy Storm's investment of cash

April 2 Prepaid Van Lease $2,850

Cash Account $2,850

To record payment for six months' lease on a van.

April 3 Cash Account $10,000

Notes Payable $10,000

To record the borrowing of $10,000 from a bank.

April 3 Cleaning Equipment $5,500

Cash Account $3,500

Accounts Payable $2,000

To record purchase of cleaning equipment.

April 4 Cleaning Supplies $4,300

Cash Account $4,300

To record the purchase of cleaning supplies.

April 7 Advertising Expense $350

Cash Account $350

To record the payment for advertisements.

April 21 Accounts Receivable $3,500

Cleaning Fee Earned $3,500

To record the cleaning fees earned.

April 23 Accounts Payable $1,500

Cash Account $1,500

To record the payment on account.

April 28 Cash Account $2,300

Accounts Receivable $2,300

To record the receipt from customers on account.

April 29 Cash Account $1,000

Dividends $1,000

To record the receipt of dividends.

April 30 Wages Expense $1,750

Cash Account $1,750

To record the payment of wages for April.

April 30 Gasoline Expense $255

Cash Account $255

To record the payment for gasoline used during April.

Explanation:

The accounting equation is given as Assets = Liabilities + Equity. This equation is always in balance with each transaction affecting at least one or two accounts in either side of the equation. This equation explains that the assets owned by a company are made up of either owings to creditors or owners of the business.

5 0

2 years ago

According to expectancy theory, the primary elements that determine how willing an employee is to work hard at tasks important t

lesya692 [45]

The expectancy theory is the theory that determines how motivated someone is. This consists of three elements, and for someone to be motivated, all of these should be on the high level. These primary elements include EXPECTANCY, INSTRUMENTALITY, AND VALENCE. Expectancy is believing that a certain level of effort will also result to a certain level of performance. Instrumentality believes that if the performance is successful then the outcome is expected to be what is desired. Valence is what the value the worker provides to an outcome.

3 0

2 years ago

Marst Corporation's budgeted production in units and budgeted raw materials purchases over the next three months are given below

RideAnS [48]

Answer:

137,000

Explanation:

Jan Feb March

Units produced 94000 80000

Raw materials 26,000

Raw materials 213800 239800 295800

Ratio of raw material to a product is 2:1

Ending inventory = 30% of next month production

Represent budgeted production in February by F

239800=2F + (80000*2*30%)-(2F*30%)

239800 = 2F +48000 =0.6F

239800-48000=2F-0.6F

191800=1.4F

F= 191800/1.4 =137000

7 0

2 years ago

Which category of GDP does each of the following items count in? Enter one of the following letters to correspond to consumption

elena-14-01-66 [18.8K]

Explanation:

-Nissan produces a car at its Tennessee plant in December, but does not intend to sell it until after the end of the year __DNC__ .

This transaction does not count because GDP is measured in one year. Nissan sell will be accounted in the next year GDP.

-An auto parts maker buys an idle textile plant in North Carolina with the intent of converting it to a distribution center_I__.

This is private investment of the auto parts maker.

-The U.S. Army rents a warehouse to store surplus equipment __G__.

This is a expense of the U.S government.

-A state employees' pension fund in California buys $10 million in corporate bonds__G__.

This is a expense of the U.S government.

-A local bakery buys 500 pounds of flour to make bread __I__.

This is private investment of the bakery.

-A doctor buys a painting to hang in his office waiting area from an artist on Etsy __I__

This is private investment because if his office looks better maybe this will attract more clients.

-A family rents a beach house for a week's vacation __C__.

This is household’s consumption.

-A retiree in Chicago receives a Social Security check from the U.S. Treasury__G___

This is an expense of the U.S government.

-A factory in the U.S. produces chemicals and sells them to a firm in Canada __NX___ .

This fits in the net exports account as an export.

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2 years ago