Select the correct answer from each drop-down menu. Read the passage. What should Milo do? What customer service skills would he

Response: $11,200

Justification:

Utilizing the accounting equation:

(Total Assets) = (Total Liabilities) + (Total Capital)

Thus,

(Total Liabilities) = (Total Assets) - (Total Capital)    (1)

To determine total liabilities, we first need to ascertain total assets and total capital.

At the end of the first year, the assets of Shapiro's consulting services are as follows:

Cash:                              $16,000
Office Supplies:                $3,200
Equipment:                     $24,000
Accounts Receivable:       $8,000
TOTAL ASSETS            $51,200

Note that total assets are calculated by summing the values of each asset above.

Net income represents an increase (or decrease if it's a loss) in capital, thus we classify it as part of capital. Specifically, net income at the end of the first year adds to the initial capital.

The owner's withdrawal also decreases the capital. 

Consequently, total capital at the end of the first year is computed as:

Capital (beginning of the year):            $15,000
Net Income (end of year):           $27,000   
Withdrawal Amount:                    ($2,000)
TOTAL CAPITAL:                       $40,000

Note: The notation ($2,000) indicates a deduction of $2,000 in accounting terms.

Using (1), total liabilities at the end of the first year can be calculated as

(Total Liabilities) = (Total Assets) - (Total Capital)
                           = $51,200 - $40,000
Total Liabilities = $11,200

Answer:

a-1) Present value of the installment option is $93.08.

      Present value for immediate bill payment is $90.

a2) Opting to pay the bill immediately is the preferable choice.

b-1) Present value of the installment option amounts to $88.65.

b-2) In this scenario, paying in installments is the better option.

Explanation:

a-1) To determine the present value of the installment plan, the payments occur as follows: $25 immediately, followed by $25 at the end of each of the next 3 years. This setup constitutes an annuity due, and the present value can be calculated as follows:

PMT denotes the annuity payment at the start of each period, which is $25.

             i signifies the interest rate compounded per period.

=0.05

            n represents the number of payment periods, which amounts to 4.

Present value = =$93.08

The present value of immediate bill payment equals $100, reduced by the 10% discount, calculated as $100 * 0.9 = $90.

a-2) Paying immediately is advantageous since it costs $90 compared to the $93.08 present value of installments.

b1) If the installment payments do not commence for another year, the present value of the payment series is computed as:

                                          =

                                          = = 88.65

b-2) In this instance, paying via installments is better as it is less expensive at $88.65 compared to the immediate payment's present value at $90.

Answer: 2, 3, 4, 5

This is the response, just finished the assignment.

Explanation:

Complete Question:

James Stilton serves as the CEO of RightLiving, Inc., a corporation that purchases life insurance policies at a reduced price from terminally ill individuals and sells them to investors. RightLiving compensates terminally ill patients with a percentage of the future death benefits (typically 65%) and subsequently sells the policies to investors for 85% of the future benefit amount. The patients receive funds to assist with their medical and other expenses, while the investors are assured a positive return on their investments. The difference between the purchase and retail prices represents RightLiving's profit.

Stilton is aware that some sick patients might acquire insurance policies through deceit (by concealing their illness on the application). If an insurance company uncovers such fraud, it will annul the policy and withhold payment. While Stilton is confident that most of the policies he has acquired are legitimate, he recognizes that a few may not be.

Requirement:

What additional ethical dilemmas might Stilton encounter?

Answer with Explanation:

Stilton's ethical challenges include:

• Should he disclose potential fraud to investors prior to executing sales?
• What policies should be established to ensure that legitimate individuals can easily sell their policies, and how would lack of such policies be unfair for RightLiving, Inc.?
• Stilton also faces ethical issues because the business model benefits from the early deaths of clients, which raises moral questions.

Answer:

2 Days

Explanation:

To clarify, we need to restate the utility function for clarity

U=V^{1/2}

1. Probability of an illness occurring in the family is 20%

2. If an illness occurs, the total number of days impacted is calculated as:

Total vacation days = 10 days x Probability of illness = 20%

= 10 x 0.2 = 2 days

This indicates that should an illness occur based on this probability, 2 out of the 10 vacation days will be affected

3. The number of remaining vacation days to enjoy would thus be 10-2 = 8 days

This indicates that even after accounting for 2 days of potential illness, the family can still enjoy their vacation period.

V= 2 days