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2 years ago

Sabina makes $2,000 per month. She spends $300 on credit card payments and $450 on an auto loan. Does she have excessive debt?

1 answer:

4 0

She does not have an excessive debt because of her debt-to-income ratio lower than 42 percent. 42% is a limit of good average debt to income ratio and Sabina's debt to income ratio has not yet exceeded that limit. The debt to income ratio can be calculated by dividing her total debt by her total income which results in 37.5% (($300+$450)/$2000 = 37.5%).

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U.S. company buys inventory from a supplier in Canada and pays for the inventory in Canadian dollars (C$). The inventory is conv

nataly862011 [7]

Answer:

A. The rate when the inventory was paid for

Explanation:

The U.S. company should register the inventory purchase in their balance sheet using the $/C$ exchange rate at that date the inventory was paid for since that would represent the actual monetary value spent on inventory. The rate is subject to change and, therefore, using the exchange rate at the time of delivery, sale or at the balance sheet date, could incorrectly represent the company's inventory expenses.

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1 year ago

Bank D pays 7.289% effective annual yield on an investment account in which interest is compounded weekly. What is the annual in

Alex17521 [72]

Answer:

annual percentage rate: 7.0404%

Explanation:

We need to solve for the annual convertible rate when we are given with the annual effective rate:

$(1+APR/52)^{52}=1+0.07289\\APR =( \sqrt[52]{1.07289} -1) \times 52\\$

apr = 0.0704035593 = 7.0404%

3 0

1 year ago

Read 2 more answers

Jane Hastings recently joined her first job as a communication executive and is working on creating press releases for an upcomi

Karo-lina-s [1.5K]

Answer:

d. high negative affect

Explanation:

Negative affectivity is a wide trait of personality, referring to the stable inclination to suffer negative emotions.

People high in Negative affectivity are much more reluctant to experience negative levels of affective mood over time and irrespective of circumstance.

Same with Jane, she started her new job but experiences emotions of negativity because of the campaign.

They often report further dissociative symptoms and focus on negative stimulation or possibly dangerous situations.

6 0

2 years ago

Read 2 more answers

Who creates the demand for coffee shops? Who creates the demand for coffee shop employees?

katen-ka-za [31]

Us people create the demand for the shops if there are no coffee shops around we create demand for it but also if there are too many shops and not enough people the shops create a demand for new employees

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1 year ago

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Macinski Leasing Company leases a new machine to Sharrer Corporation. The machine has a cost of $70,000 and fair value of $95,00

Montano1993 [528]

The nature of the lease arrangement is that of a finance lease. the following journal entries will be passed in the books of accounts:

Explanation:

a. This is because Sharrer Corporation (the lesse) will assume the risks of normal ownership. Maintenance is also not provided by the lessor.

Mike Macinski should, thus, use direct financing lease method. Lease receivable will be $95,000 and interest will be recognized annually.

b. Present value interest factor of annuity for 9% and 3 years = 2.531 (from PVIFA tables)

Annual payment will be = 95,000 by 2.531 = $37,534.57

Interest will be calculated on the opening balance of principal, at the rate of 9%. Thus, interest for the 1st year will be = 95,000 into 0.09 = $8550.

Principal paud during the year = total amount paid - interest amount. closing principal amount = opening principal - principal amount paid.

Period Cash due Interest Principal Balance

0 95,000.00

1 37,534.57 8,550.00 28,984.57 66,015.43

2 37,534.57 5,941.39 31,593.18 34,422.25

3 37,534.57 3,112.33 34,422.25 0.00

c. Entry for the signing of the lease agreement:

Fixed assets account (Dr) 95,000

Lease Payable account (Cr) 95,000

Entry on 31st December 2014:

Lease payable account (Dr) 28984.57

Interest account (Dr) 8550

Cash (Cr) 37534.57

Entry on 31st december 2015:

Lease payable account (Dr) 31593.18

Interest account (Dr) 5941.39

Cash (Cr) 37534.57

Entry on 31st december 2016:

Lease payable account (Dr) 34422.25

Interest account (Dr) 3112.33

Cash (Cr) 37534.57

5 0

2 years ago