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Alex73
1 month ago
13

Norma is considering buying a certificate of deposit with the $500 she has in a regular savings account. Explain to her what fac

tors she could consider when choosing a certificate of deposit.
Business
1 answer:
marusya05 [3.7K]1 month ago
4 0

Answer:

Below are detailed factors she might want to take into account when selecting a certificate of deposit.

Explanation:

A larger principal amount is likely to yield a higher interest rate.

Generally, a longer duration will result in a better interest rate, unless there’s an altered yield curve situation.

Smaller companies tend to provide better interest rates than larger firms.

Personal CD accounts typically offer higher interest rates compared to those available for business accounts.

You might be interested in
A company has retained earnings of $94,000 as of December 31, 2014. The Pro-forma income statement projects net income of $22,00
marusya05 [3725]

Answer:

$46,000.

Explanation:

To determine the retained earnings as of the end of 2015, we must first assess the total dividend that will be distributed to shareholders, and then combine the net income from 2015 with the leftover retained earnings from the conclusion of 2014 (after the distribution of 2014's dividend in March 2015) to arrive at the retained earnings figure for the close of 2015.

Total dividend on March 2015 = 0.7 x 100,000 = 70,000

Retained Earnings as of the end of 2015 = 94,000 - 70,000 + 22,000 = 46,000.

5 0
2 months ago
Champagne, inc., had revenues of $12 million, cash operating expenses of $8 million, and depreciation and amortization of $1.5 m
harina [3808]

The calculation for free cash flow can be summarized as follows:

Revenue 12000000

Subtract: Expense (8000000)

Subtract: Depreciation (1500000)

Earnings Before Tax 2500000

Subtract Tax (750000)

Earnings after tax 1750000

Add Depreciation 1500000

Total Cash Earnings 3250000

Subtract: Change in Working Capital (500000)

Subtract: Asset Purchase (700000)

Free Cash Flow 2050000

Therefore, Free Cash Flow can be computed in this manner.

4 0
2 months ago
Which of the following items are normally classified as current liabilities for a company that has a one-year operating cycle? (
Nady [3600]

Response:

  • Impuesto sobre ventas a pagar
  • FICA-impuestos de seguridad social a pagar que vencen en 40 días
Parte de un préstamo a largo plazo que vence en 1 mes
  • Clarificación:

Los Pasivos Corrientes se refieren a obligaciones que deben ser pagadas en un período de 12 meses. Todo lo que sea mayor se clasifica como Pasivo a Largo Plazo. Según los elementos enlistados, los pasivos corrientes serán;

Impuesto sobre ventas a pagar, que son los tributos que el gobierno cobra sobre bienes y servicios, siendo responsabilidad de la empresa su recaudación y remisión puntual al gobierno. Esto es considerado pasivo corriente ya que se remiten con relativa frecuencia.

Los impuestos de seguridad social FICA pendientes por 40 días también son un pasivo corriente debido a su período de tiempo inferior a un año.

Una parte de un préstamo a largo plazo que vence en un mes también se clasifica como corriente por su vencimiento cercano.

8 0
2 months ago
The Porters’ food, clothing, and medical expenses are not fixed expenses. Explain what type of expense they are, and why.
soldi70 [3635]

Answer:

Such expenses are variable, as they can fluctuate based on living circumstances.

4 0
3 months ago
cathy's customer base is 2/3 residential and 1/3 business . if she has 350 residential customers, how many total customers does
Free_Kalibri [3773]

Cathy's clientele consists of two-thirds residential customers and one-third business customers, with 350 residential customers in total.

Determine:

The overall number of customers

Solution:

Considering 350 represents two-thirds of the total customers, divide 350 by 2 to get 175, which equals one-third of the customer base.

175 × 3 = 525

<span>Thus, the total customer count is 525.</span>

8 0
3 months ago
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