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2 years ago

Which two of the four cs of credit have to do with earning potential and available cash?

Business

1 answer:

Natali5045456 [20]2 years ago

7 0

The four 'Cs' of credit are : Character, Capacity or Cashflow, Capital and Conditions.

Out of the 4 'Cs' of credit, the two 'Cs' that deal with the earning potential and available cash are 'Capacity' and 'Capital'.

Capacity: It is the assessment the of the ability of any business to pay bills and maintain the cash flow. It contains in it the debt structure of the firm and the unused credit.

Capital: It is the assessment, if a company has the ability to pay back its creditors by the help of its financial resources or available cash.

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2 years ago

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B, C and D are all examples of good etiquette

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2 years ago

Read 2 more answers

Lexington Company engaged in the following transactions during Year 1, its first year of operations. (Assume all transactions ar

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Answer:

$2,115

Explanation:

Lexington Company's Year 2 net cash flow from financing activities = cash received from issuing stocks minus bank loan payments - distributed dividends

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2 years ago

You have been paying $1000 every month for 6 years to a friend of yours who is extremely lazy to find a job. The annual interest

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Answer:

$90,280.01

$92,784.19

Explanation:

Use the following formula to calculate the worth of money

Worth of money = Periodic Payment x ( ( ( 1 + Periodic Interest rate )^numbers of periods ) - 1 ) / Periodic Interest rate

Where

Periodic Payment = $1,000 x 12 months per year = $12,000 annually

Periodic interest rate = 9%

Numbers of periods = 6 years

Placing values in the formula

Worth of money = $12,000 x ( ( ( 1 + 9% )^6 ) - 1 ) / 9%

Worth of money = $90,280.01

Where

Periodic Payment = $1,000 x 6 months = $6,000

Periodic interest rate = 9% X 6/12 = 4.5%

Numbers of periods = 6 years x 12/6 = 12

Placing values in the formula

Worth of money = $6,000 x ( ( ( 1 + 4.5% )^12 ) - 1 ) / 4.5%

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2 years ago

Susie is thinking about changing her auto insurance policy at Fret-No-More Auto Insurance. Her current policy includes the follo

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Answer:

Changes that would increase Susie’s limits the most without increasing her monthly premium by more than $5.00 is Option C: Increase coverage on bodily injury to $100/300,000 and on property damage to $50,000.

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Lower coverage does not necessarily means lower premiums.

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Full coverage policies of the vehicle not only covers the liabilities but also the damage that occurs to the car.

If Susie increases the 'coverage' on the injury of the body to '$100/300,000' and on property damage to '$50,000', then her monthly premium would not increase from more than $5.00.

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