Get started on the assignment by watching the Should I Buy a House? video on the link below then answer the following questions. http://media.pearsoncmg.com/ph/esm/chet_cleaves_cbsm9e_12/tools/RealWorldCase_before.htm Joe has decided that he is tired of paying rent and not building equity of his own. He thinks that he is ready to assume the responsibility of owning a home and has found what he believes is the perfect first home. Joe meets with the loan officer at his bank where the process of buying a home is started.
A 20% discount of original price for a period of one week. In the second special sale will offer a 30% discount from its original price per unit. According as remaining inventory the company will be clearance with a 50% and offer free one jean with the purchase. The goal of the proposal is to bring the inventory to the minimum amount available to avoid storage costs and prepare for the upcoming shopping season. The experience with excess inventory event has prompted owners of La Boutique C, to be more careful in buying merchandise after the output has no time.
|Name: Lauren Reed |Date: 3/31/15 | Graded Assignment Practice: The Loan Ranger Answer the following questions based on what you have learned. You may need to search for an online loan calculator to answer the questions. (10 points) |Score | | | 1. The owners of a successful restaurant want a loan for $50,000 to renovate the kitchen and expand the dining room. They expect that the extra tables will add between $2,000 and $5,000 to the restaurant’s monthly revenue.
* Of the $18400 Rhodes made in mortgage payments last year, $8000 was interest. The income statement lists 2008 interest paid as $32000, which means that there are other debts that required payments of $24000. If possible, accelerating payback on these loans can be very beneficial in the long run. * At industry average levels, wages of a similar business would be approximately $79000, or $11000 lower. * Wages, advertising and rent total %23.1 of sales in the average business, leaving %1.9 of sales for property taxes, interest, utilities, depreciation and other expenses.
Write at least one paragraph. Buying an extra copier would probably be a good choice, since the amount of revenue lost almost doubles (US$17,805.50 vs. US$8,000.00) the cost of buying an extra copier. I feel confident with my answer, although there are some limitations to it. As was mentioned before, the sum of the weeks will not always add up to 1 years’ worth, so that needs to be taken into account. Also, this simulation must be run several times to find the average amount
The system can work on a three tier level at first launch. I will provide you an example and for this I will call the levels Beginner, Advanced Shopper and Super Shopper. The Beginner will gain 1 point for every dollar spent in the store. When the customer reaches $1500 spent in the store, we can promote them to the Advanced Shopper level where they can earn 1.5 points for every dollar spent. And finally, once they reach $3,000 we can promote them to the Super Shopper level where they will earn 2 points for every dollar spent in the store.
The accounts payable at the Fiscal Year End increased by almost 200%. You should as mentioned in the paragraph above use these additional funds to reduce the payables and to be able to take advantage of the accounts from your supplies. Also you purchased items for your inventory with installment payments made available to you from your suppliers. What I recommend is that not to purchase items with an installment plan but to purchase less items and take the discounts by paying for the items within the time period allotted to the discounts. The line of credit at the bank has almost reached
An annuity pays $24,000 per year for 11 years (first payment one year from today). You feel the appropriate discount rate is 13%. What is the annuity worth to you today? 10. You deposit $16,000 per year for 12 years (deposits at the end of each year) in an account that pays an annual interest rate of 14%.
Josephine Mandeville is an outside board member and audit committee member. She was hired and paid $200,000 for her consulting on the new computer equipment purchase and installation that $1,000,000+. This entire cost, including Mandeville’s consulting fee, was capitalized. Additionally, a $1,000,000 loan was made to the CEO’s personal secretary with a 1% interest rate and a maturity date in 37 years. Hiring Ms. Mandeville and making this sizable loan were approved by the board, but it is uncertain whether the board is providing effectively overseeing the financial reporting process and internal controls as it pertains to related-party transactions.
After reviewing all the pros and cons, I would suggest buying the new house first, then selling the old house and paying off the mortgage. It is very important to distinguish between a hobby and a business when calculating our taxes, due to the fact that a business allows me to deduct any losses incurred during a year, while a hobby does not allow any deductions. According to the information that you provided, you have made a profit of $20,000 in the last year from selling your jewelry. In addition, you owned equipment that was used to make the jewelry; this equipment has been owned by you for the last five years, which if it is a business, it can be deducted as an expense; if it is a hobby it cannot be deducted. The difference between a hobby and a business is the intent of making a profit.