Is it possible to do a financial statement analysis using one
financial statement?
What role does each statement play in financial analysis?
Please give answers in detail, thanks
Answers
While analyzing a single financial statement can provide some insights, it is best to examine all three statements for a comprehensive understanding of a company's financial position and performance. Yes, it is possible to conduct a financial statement analysis using just one financial statement, but it might not provide a comprehensive understanding of a company's financial health.
Financial statement analysis typically includes reviewing the balance sheet, income statement, and cash flow statement.
Each statement plays a specific role in financial analysis:
1. Balance Sheet: This statement presents a snapshot of a company's assets, liabilities, and shareholders' equity at a specific point in time. It helps analysts assess a company's liquidity, financial stability, and overall net worth. However, it does not provide information about the company's performance over a period.
2. Income Statement: This statement summarizes a company's revenues, expenses, and net income (or loss) for a specific period. It helps analysts evaluate a company's profitability, efficiency, and operational performance. Using only the income statement, one can identify trends in revenue and expense management but not necessarily understand the company's assets or cash flows.
3. Cash Flow Statement: This statement provides information about a company's cash inflows and outflows during a specific period, divided into operating, investing, and financing activities. It helps analysts determine a company's cash-generating ability, liquidity, and overall financial flexibility. However, it does not directly show profitability or non-cash related assets and liabilities.
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Related Questions
The 2021 income statement of Adrian Express reports sales of $22,710,000, cost of goods sold of $13,100,000, and net income of $2,380,000. Balance sheet information is provided in the following table.
The following condensed information is reported by Sporting Collectibles.
2021 2020 Income Statement Information Sales revenue $ 13,464,000 $ 9,100,000 Cost of goods sold 8,711,208 6,600,000 Net income 400,180 318,000 Balance Sheet Information Current assets $ 1,670,000 $ 1,570,000 Long-term assets 2,270,000 1,970,000 Total assets $ 3,940,000 $ 3,540,000 Current liabilities $ 1,270,000 $ 970,000 Long-term liabilities 1,430,000 1,430,000 Common stock 870,000 870,000 Retained earnings 370,000 270,000 Total liabilities and stockholders' equity $ 3,940,000 $ 3,540,000 Required:
1. Calculate the following profitability ratios for 2021: (Round your answers to 1 decimal place.)
Answers
The profitability ratios for Adrian Express in 2021 are as follows:
1. Gross profit margin = (Sales - Cost of goods sold) / Sales
= ($22,710,000 - $13,100,000) / $22,710,000
= $9,610,000 / $22,710,000
≈ 0.4236 or 42.4%
2. Net profit margin = Net income / Sales
= $2,380,000 / $22,710,000
≈ 0.1048 or 10.5%
The gross profit margin measures the profitability of a company's core operations by assessing the percentage of sales revenue that remains after deducting the cost of goods sold. In the case of Adrian Express, the gross profit margin is approximately 42.4%. This means that for every dollar of sales, the company retains about 42.4 cents as gross profit.
The net profit margin, on the other hand, provides an indication of the overall profitability of the company by considering all expenses, including operating costs, interest, and taxes. Adrian Express achieved a net profit margin of approximately 10.5% in 2021, which implies that for every dollar of sales, the company generated a net income of about 10.5 cents.
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If a family planned to spend $370 for food during March but only spent $348, this difference would be referred to as a:
Answers
Answer:
Surplus
Explanation:
Given:
Family planned to spend = $370
Amount spend = $348
Find:
Amount of surplus
Computation:
Amount of surplus = Family planned to spend - Amount spend
Amount of surplus = $370 - $348
Amount of surplus = $22
A surplus is the quantity of an item or resource that is greater than the amount that is actively used.
________ is an accounting procedure for systematically spreading the cost of a tangible asset over its estimated useful life.
Answers
depreciation is an accounting procedure for systematically spreading the cost of a tangible asset over its estimated useful life.
The term depreciation refers to the accounting method used to spread the cost of a tangible or physical asset over its useful life. Depreciation indicates how much of the value of an asset has been used. It allows businesses to generate income from the assets they own by paying them over a period of time.
From an accounting perspective, depreciation is defined as a systematic reduction in the recorded cost of a fixed asset until the value of the asset becomes zero or negligible. Examples of fixed assets include buildings, furniture, office equipment and machinery.
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A company's ____________ are the priorities, principles, and beliefs that guide the company. A. Strengths B. Demographics C. Values D. Opportunities Please select the best answer from the choices provided A B C D.
Answers
Answer:
I would say its C: Values
Explanation: I own three stores and trust me the most important part about a company is the value.
Answer:
c <3
Explanation:
_ 5. Which of the following is an example of terminal punctuation?
A. Comma.
B. Question mark.
C. Quotation mark.
D. Colon.
Answers
terminal punctuation refers to punctuation marks used to identify the end of a portion of text.
Select the correct answer.
Sandra is about to start a small business in her area. She is creating a business plan after carrying out extensive research. She is currently creating projected balance sheets and income statements that could be useful to potential investors. Under which section of the business plan should Sandra place these records?
A.
business description
B.
financial analysis
C.
marketing strategy
D.
sales forecast
E.
exit strategy
Answers
Answer:
Financial Analysis
Explanation:
Just trust moi ;)
what is the best way for a certifying officer to prevent pecuniary liability?
Answers
By only certifying travel documents that are legal, proper, and correct.
QUESTION 4 of 10: A clothing designer is looking for a job that can cover her living expenses of $5,000 per month. If she plans on working
forty hours a week, with four weeks a month, what's the minimum hourly wage she needs?
Answers
Answer:
$31.25
Explanation:
40 hours a week x 4 weeks a month = 160 hours of work per month
$5,000 divided by 160 = $31.25
Which ICS Supervisory Position title is used at the Division/Group organizational level?
Possible Answers:
a. Chief
b. Officer
c. Leader
d. Supervisor
Answers
Supervisor ICS Supervisory Position title is used at the Division/Group organizational level.
Option D is correct.
Briefly describe the Incident Command System (ICS).The Incident Command System (ICS) is a standard approach to the command, control, and coordination of emergency response. It provides responders from a variety of agencies with a common hierarchy within which they can function effectively.
The initial purpose of ICS was to address issues with inter-agency responses to Arizona and California wildfires. In the United States, however, it is now included in the National Incident Management System (NIMS), and it is utilized in all-hazards scenarios, including active shootings and hazardous scenes.
Additionally, ICS has served as a global model for strategies of a similar nature. The ICS has processes and a standard management hierarchy for handling any size of temporary incident. Staff ought to have received sufficient training prior to an incident, and the involved authorities ought to have developed and approved all necessary ICS protocols.
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You are considering two ways of financing a spring break vacation. You could put it on your credit card, at 15% APR, compounded monthly, or borrow the money from your parents, who want an interest payment of 8% every six months. Which is the lower rate? (Note: Be careful not to round any intermediate steps less than six decimal places.) The effective annual rate for your credit card is .....%. (Round to two decimal places.) The effective annual rate for the loan from your parents is ......%. (Round to two decimal places.) The option with the lower effective annual rate is...... (Select from drop-down menu.)
Answers
Firstly, we'll calculate the effective annual rate (EAR) for the credit card. Given: APR = 15% and compounded monthly.Using the formula to find EAR:EAR = (1 + r / m)^m - 1Where, r is the APR and m is the number of times compounded in a year.
EAR = (1 + 0.15 / 12)^12 - 1EAR = 0.1557 = 15.57% (approx)Therefore, the effective annual rate for the credit card is 15.57%.Secondly, we'll calculate the effective annual rate (EAR) for the loan from your parents. Given: interest payment of 8% every six months.To find the EAR, we need to calculate the interest rate for one-sixth of a year, then double it to find the annual rate.r = 2[(1 + 0.08)^(1/2) - 1]r = 2[(1.08)^(1/2) - 1]r = 0.0784 = 7.84% (approx).
Therefore, the effective annual rate for the loan from your parents is 7.84%.Lastly, we'll compare the two options. The option with the lower effective annual rate is the loan from your parents since it has an EAR of 7.84% which is lower than the 15.57% EAR for the credit card.Therefore, the option with the lower effective annual rate is "the loan from your parents."
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polycom systems earned $487 million last year and paid out 24 percent of earnings in dividends. a. by how much did the company’s retained earnings increase? (
Answers
To find out how much company's retained earnings increased Dividends paid out = 0.24 x $487 million = $116.88 million, Retained earnings increase = $487 million - $116.88 million = $370.12 million. Company's retained earnings increased by $370.12 million.
Earnings typically refer to the profits or income generated by a company during a specific period, such as a fiscal year. It represents the financial performance of the company and is calculated by deducting expenses and taxes from the total revenue. Earnings can be measured in different ways, including net income, operating income, or earnings before interest, taxes, depreciation, and amortization (EBITDA). Earnings are a key indicator of a company's profitability and are often used to evaluate its financial health, assess growth potential, and make investment decisions.
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Gradual shifting of a time series to relatively higher or lower values over a long period of time is called
a. periodicity.
b. cycles.
c. seasonality.
d. trend.
Answers
Gradual shifting of a time series to relatively higher or lower values over a long period of time is called a trend. (option d)
A trend in a time series is a long-term movement or tendency in the data, representing a gradual shifting of values to relatively higher or lower levels over an extended period of time. Trends can be positive, indicating an upward movement in the data, or negative, indicating a downward movement.
Trends can arise due to a variety of factors, such as changes in population demographics, technological advancements, economic conditions, and government policies. Identifying and analyzing trends in a time series can be useful for predicting future values, understanding underlying drivers of the data, and making informed decisions.
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What is NOT a reason a new product might fail?
O Too little marketing support
O Unexpected consumer reaction
O Poor positioning
O Appropriate channels selected
Answers
wth fill in the blanks
Bankruptcy
Cash
Check
Credit
Debit
Debt
Foreclosure
Expenditures
Credit Card
Debit Card
Impulse Buying
Long-Term Goals
Needs
Short-Term Goals
Wants
Budget
Discretionary Income
Fixed Expenses
Variable Expenses
Scarcity
(not all the words are being used)
1. The amount of financial trust extended to a person or a business by a lender; a loan.
2. Money owed.
3. A legal process that gives a debtor protection from creditors.
4. Goods or services that make people more comfortable or content but which are not necessary for survival.
5. Goods or services that people cannot survive without, such as water, food, shelter, and clothing.
6. Money that is spent on goods, services, and bills.
7. A purchase based on an immediate want or due to the pressure of advertising.
8. Plans that take a year or more to accomplish.
9. Plans that can be accomplished within three months to a year.
10. A record of income and spending and a plan for managing money.
11. Money available to spend on goods and services that are not essential.
12. The economic condition of limited resources that prevents people from having everything they want.
13. Expenses that do not change from month to month, such as auto insurance or rent.
Answers
Answer:
1. Credit 2. Debt 3. Bankruptcy 4. Wants 5. Needs 6. Cash 7. Impulse Buying 8. Long-term goals 9. Short-term goals 10. Budget 11. Discretionary income 12. Scarcity 13. Fixed Expenses
Explanation:
Asmeret works as a hotel manager for a popular family resort and casino in Atlantic City, New Jersey. During the summer, hotel managers aim for an occupancy rate of at least 85% to ensure that overhead costs are covered. The resort is known for its quality services; guests generally return an average of three times during the summer and use their rewards and loyalty cards during their stays. On this particular day, Asmeret is quite stressed because the occupancy rate is only 65%. If the hotel fails to sell at least an additional 20% of the available rooms, she might be in some trouble. Required: Which aspect of a service is best illustrated in the scenario?
A) Services are perishable.
B) Service standards show wide variation.
C) Services are inseparable from service providers.
D) Companies cannot easily standardize the services they provide.
E) Buyers play an important role in the creation and distribution of services.
Answers
Answer: A) Services are perishable
Explanation:
The aspect of a service is best illustrated in the scenario is that services are perishable.
Perishability is a term that is used in marketing and it implies that the capacity of service cannot be stored and sold in the future. Once services have been used, they cannot be saved, returned or stored.
Once services has been rendered to a customer, it has been then consumed and it can't be delivered to another person. Other characteristics of services are inseparability, variability and intangibility.
'गंध' शब्द में उपसर्ग एवं प्रत्यय जोड़कर चार शब्द बनाइए।
Answers
Answer:
Sugandh...Durgandh
gandhak..
Madam Shanna plans to buy a new car which cost RM 60,000 from a bank loan with an interest of 9% per year compounded every month. She will be required to pay 10% of down payment first and the balance will be paid by monthly installment for 7 years. Due to the high interest, she seeks help from a cooperative at her workplace. The interest imposed by the cooperative is slightly low which is 6% per year compounded every month. But in order to get a loan from the cooperative, one must become a member first for at least one year. Since she is just become a member, she is only entitling for the loan one year from now. She plans to proceed with the bank loan now and for next year she will continue the loan with the cooperative. The tenure will be for 7 years overall. (i) Calculate how much is the monthly installment to the bank? (ii) Calculate how much is the monthly installment to the cooperative?
Answers
The monthly installment to the bank will be approximately RM 804.78.
The monthly installment to the cooperative will be approximately RM 664.95.
(i) To calculate the monthly installment for the bank loan, we can use the formula for the present value of an annuity. The loan amount is RM 60,000 minus the down payment of 10%, which is RM 6,000.
Loan amount = RM 60,000 - RM 6,000 = RM 54,000
The interest rate is 9% per year, compounded monthly. The loan tenure is 7 years, which means 7 x 12 = 84 months.
Using the formula:
Monthly installment = (Loan amount * Monthly interest rate) / (1 - (1 + Monthly interest rate)^(-Number of months))
First, we need to convert the annual interest rate to a monthly interest rate:
Monthly interest rate = (1 + Annual interest rate)^(1/12) - 1
= (1 + 0.09)^(1/12) - 1
≈ 0.00742
Plugging the values into the formula:
Monthly installment = (RM 54,000 * 0.00742) / (1 - (1 + 0.00742)^(-84))
≈ RM 804.78
Therefore, the monthly installment to the bank will be approximately RM 804.78.
(ii) Since Madam Shanna is only eligible for the cooperative loan one year from now, the loan tenure with the cooperative will be 6 years (7 years - 1 year). The loan amount for the cooperative will be the remaining balance after deducting the down payment and one year of payments made to the bank.
Remaining balance = Loan amount - (Monthly installment * Number of months)
Remaining balance = RM 54,000 - (RM 804.78 * 12)
= RM 43,336.16
The interest rate for the cooperative loan is 6% per year, compounded monthly.
Using the same formula as above with the adjusted values:
Monthly installment = (Remaining balance * Monthly interest rate) / (1 - (1 + Monthly interest rate)^(-Number of months))
Monthly interest rate = (1 + Annual interest rate)^(1/12) - 1
= (1 + 0.06)^(1/12) - 1
≈ 0.00488
Monthly installment = (RM 43,336.16 * 0.00488) / (1 - (1 + 0.00488)^(-72))
≈ RM 664.95
Therefore, the monthly installment to the cooperative will be approximately RM 664.95.
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Blossom Company received a check for $28320 on July 1 which represents a 6 month advance payment of rent on a building it rents to a client. Unearned Rent Revenue was credited for the full $28320. Financial statements will be prepared on July 31. Blossom's should make the following adjusting entry on July 31:
A. debit Cash, $28320; credit Rent Revenue, $28320.
B. debit Rent Revenue, $4720; credit Unearned Rent Revenue, $4720.
C. debit Unearned Rent Revenue, $28320; credit Rent Revenue, $28320.
D. debit Unearned Rent Revenue, $4720; credit Rent Revenue, $4720.
Answers
Answer:
D. debit Unearned Rent Revenue, $4720; credit Rent Revenue, $4720.
Explanation:
When the Cash was received for 6 month`s Rent the entry was :
Debit : Cash $28320
Credit : Unearned Rent Revenue $28320
At 31 July when 1 month`s rent expires the entry will be :
Debit : Unearned Rent Revenue (1/6 x $28,320) $4,720
Credit : Rent Revenue $4,720
thus
We reverse the liability - Unearned Rent Revenue and recognize Revenue for the month expired.
a. In 2015 , Bilal had a monthly salary of $4,166.5. Assume 2015 is the base year. In 2018 , the CPI went up to 106.3. His monthly salary in 2018 was $4,800. Did the purchasing power of Bilal go up? Please show calculations and explain your answers (2) b. In 2008 , there was a major housing mortgage crisis in the U.S. economy which eventually led to recession. At that time, there was a GDP Gap or loss of 10.75%. The natural rate of unemployment in 2008 was 5.1%. What was the unemployment rate in 2008 in the U.S.? c. Germany's current inflation rate of 1.8% and France"s current inflation rate is 1.3%. Using the rule of 70 , which country will first experience doubling of prices of goods and services? \$how calculations
Answers
In this case, the base year is 2015, so we'll use the salary in 2015 ($4,166.5) and the CPI in 2018 (106.3) to calculate the adjusted salary in 2018.The formula is:Adjusted Salary in 2018 = $4,166.5 * 106.3 / 100 = $4,423.05
Comparing the adjusted salary in 2018 ($4,423.05) with Bilal's actual salary in 2018 ($4,800), we can see that his salary increased more than the adjustment for inflation. Therefore, the purchasing power of Bilal increased between 2015 and 2018.
b. The GDP Gap represents the difference between the actual Gross Domestic Product (GDP) and the potential GDP. In 2008, there was a GDP Gap or loss of 10.75%, which means the actual GDP was 10.75% lower than the potential GDP. The natural rate of unemployment, also known as the Non-Accelerating Inflation Rate of Unemployment (NAIRU), represents the unemployment rate at which inflation remains stable. In 2008, the natural rate of unemployment was 5.1%.
To calculate the unemployment rate in 2008, we need to add the GDP Gap to the natural rate of unemployment:
Unemployment Rate = Natural Rate of Unemployment + GDP Gap
Unemployment Rate = 5.1% + 10.75%
Unemployment Rate = 15.85%
Therefore, the unemployment rate in the U.S. in 2008 was approximately 15.85%.
c. To determine which country will first experience a doubling of prices of goods and services using the rule of 70, we divide the number 70 by the inflation rate to calculate the approximate number of years it will take for prices to double.
For Germany, with an inflation rate of 1.8%:
Approximate number of years = 70 / 1.8 = 38.89 years
For France, with an inflation rate of 1.3%:
Approximate number of years = 70 / 1.3 = 53.85 years
Comparing the two, Germany will experience a doubling of prices of goods and services sooner than France, as it will take approximately 38.89 years for prices to double in Germany, while it will take approximately 53.85 years for prices to double in France.
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the cost for producing a certain product is $65 each. the fixed costs are $120,000. the selling price for each product is $90. what is the break-even point?
Answers
The break-even point for the given product is 4,800 units.
What is the break-even point for the given product?To find the break-even point, we need to calculate the number of units that need to be sold to cover the fixed costs.
Given information:
Fixed costs = $120,000
Variable cost per unit = $65
Selling price per unit = $90
Break-even point (in units):
= Fixed costs / (Selling price per unit - Variable cost per unit)
= $120,000 / ($90 - $65)
= $120,000 / $25
= 4,800 units.
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hich pricing strategy involves setting a high price for an exclusive, high-end product?
Answers
which is an invisible barrier based on the prejudicial beliefs that underlie organizational decisions that prevent women from moving beyond certain levels within a company?
Answers
The glass ceiling is an invisible barrier based on the prejudicial beliefs that underlie organizational decisions that prevent women from moving beyond certain levels within a company.
What is a glass ceiling?A glass ceiling refers to a metaphor usually applied to women, used to represent an invisible barrier that prevents a given demographic from rising beyond a certain level in a hierarchy. No matter how invisible the glass ceiling is expressed, it is a difficult obstacle to overcome. The metaphor was first used by feminists about barriers in the careers of high-achieving women.
It was coined by Marilyn Loden during a speech in 1978.
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What is the marginal revenue and marginal cost for this diagram?
What type of market is this? Explain your answer
Answers
Marginal revenue :
2060120200300420560Marginal cost :
108210192640It is a Monopolistic market structure because marginal revenue is greater than the marginal cost.
Marginal Revenue is the increase in the revenue by selling one extra product in the market. It is calculated by the Change in revenue divided by the change in output.
Marginal cost is the change in cost by producing one extra unit of output. It is calculated by a change in cost divided by the change in units.
Monopolistic market structure is where there are multiple companies producing similar products in the market.Example for monopolistic structure can be a grocery store.
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Which of the following is a rule of analysis?
Group of answer choices
A. Understand the question
B. Conduct research
C. Set a deadline
Answers
The rule of analysis is to conduct research is the correct option among the given alternative options.Analysis is a comprehensive approach to understanding things in order to come up with findings that are insightful and accurate. It's a process of disintegrating something complex into smaller, more basic components to better understand it.
An analysis report or research paper is an educational paper that explores and assesses a subject or issue in depth. It is written after thorough research and examination of the subject, issue, or item to be analyzed.conducting research:When performing analysis, conducting research is one of the most significant rules. The research phase is critical because it allows you to obtain and collect data and information that you can use to form your analysis's foundation.
To get the knowledge and data that you need to begin the analysis, you can conduct surveys, interviews, or other kinds of research as appropriate. The process of research involves: Define the research question Conduct a literature review Develop a research plan Gather data Analyze data Communicate findings
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How much does one need to have to open a bank
Answers
Which deduction generally makes up the largest portion of income subtracted from an employee?
A) taxes
B) unemployment
C) health benefits
D) 401K retirement
Answers
Answer:
it's taxes
EXPLANATION:
Read the first four paragraphs (1-4) of the above comprehension passage and write a summary.
Your summary should be one-third (1/3) of the original text.
Our current educational system focuses on preparing today’s youth to get good jobs by developing scholastic skills. Their lives will revolve around their wages. Many will study further to become engineers, scientists, cooks, police officers, artists, writers, and so on. These professional skills allow them to enter the workforce and work for money. But there is a big difference between your profession and your business. Often, I ask people, "What is your business?" And they will say, "Oh, I’m a banker." Then I ask them if they own the bank. And they usually respond, "No, I work there." In that instance, they have confused their profession with their business. Their profession may be a banker, but they still need their own business.
2. A problem with school is that you often become what you study. So, if you study cooking, you become a chef. If you study the law, you become an attorney, and a study of auto mechanics makes you a mechanic. a. The mistake in becoming what you study is that too many people forget to mind their own business. They spend their lives minding someone else’s business and making that person rich. To become financially secure, a person needs to mind their own business. Your business revolves around your asset column, not your income column. The number-one rule is to know the difference between an asset and a liability, and to buy assets. The rich focus on their asset columns, while everyone else focuses on their income statements.
3. That is why we hear so often: "I need a raise." "If only I had a promotion." "I am going back to school to get more training so I can get a better job." "I am going to work overtime." "Maybe I can get a second job." The primary reason the majority of the poor and middle class are fiscally conservative—which means, "I can’t afford to take risks"— is that they have no financial foundation. b. They have to cling to their jobs and play it safe. When downsizing became the "in" thing to do, millions of workers found out their largest so-called asset, their home, was eating them alive. Their "asset" was costing them money every month. Their car, another "asset," was eating them alive. The golf clubs in the garage that cost $1,000 were not worth $1,000 anymore. Without job security, they had nothing to fall back on. What they thought were assets could not help them survive in a time of financial crisis.
4. I assume most of us have filled out a credit application to buy a house or a car. It’s always interesting to look at the "net-worth" section because of what accepted banking and accounting practices allow a person to count as assets. One day when I wanted a loan, my financial position did not look too good. So, I added my new golf clubs, my art collection, books, electronics, Armani suits, wristwatches, shoes, and other personal belongings to boost the number in the asset column. But I was turned down from getting the loan because I had too much investment in renting houses. The loan committee didn’t like that I made so much money from rent. They wanted to know why I did not have a normal job with a salary. They did not question the Armani suits, golf clubs, or art collection. Life is sometimes tough when you do not fit the standard profile.
Answers
The current educational system focuses on preparing youth for jobs, but it's important to differentiate between a profession and a business .
people become what they study and spend their lives working for someone else, neglecting their own business.
Financial security lies in building assets, not just relying on income. The poor and middle class struggle due to lack of financial foundation, often clinging to jobs for security. Possessions like homes and cars can become liabilities rather than assets. Traditional net-worth calculations may not account for unconventional sources of wealth, leading to difficulties in obtaining loans.
The first four paragraphs highlight the distinction between a profession and a business. While the educational system aims to equip individuals with scholastic skills for good jobs, it's crucial to understand that a profession alone might not guarantee financial independence. Many people mistakenly confuse their profession, such as being a banker, with owning a business. Financial security comes from minding one's own business and focusing on building assets rather than solely relying on income.
The second paragraph emphasizes that becoming what one studies can lead to a narrow focus on someone else's business, which often enriches others rather than oneself. To achieve financial stability, individuals need to pay attention to their own asset column. Differentiating between assets and liabilities becomes crucial. The wealthy prioritize growing their asset columns, while those who concentrate solely on their income statements struggle to achieve financial success.
The third paragraph delves into the reasons why the poor and middle class tend to be fiscally conservative and risk-averse. Lacking a strong financial foundation, they become dependent on their jobs for stability and are reluctant to take risks. Economic downturns expose the vulnerability of their so-called assets, such as homes and cars, which turn out to be burdens rather than sources of financial security.
The fourth paragraph illustrates a personal experience related to net-worth calculations and loan applications. It highlights the disparity between accepted accounting practices and unconventional wealth sources. While personal belongings like art collections, golf clubs, and expensive suits were not questioned, the committee focused on the applicant's rental property investments instead of a traditional job with a salary. This experience serves as an example of the challenges faced when deviating from the standard profile.
Overall, the passage emphasizes the importance of minding one's own business, building assets, and understanding the difference between assets and liabilities. It sheds light on the struggles faced by those without a solid financial foundation and challenges traditional notions of wealth evaluation.
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What are the characteristics of an Agile team?
Answers
Agile teams are all about: communication (usually daily), teamwork, problem solving, technical development skills, and striving to improve team velocity with each iteration.
What are the three main roles in Agile teams?Three key roles in Agile teams: 1) Improve sprint planning and retrospectives with Jira's user story map. 2) Manage complex dependencies with SAFe PI Planning Suite in Jira. 3) Build empathy for your team and customers with Jira.
What are the Top Agile Principles?Agile principles: 1) Customer Satisfaction. The customer should be satisfied with the prompt delivery of the product. 2) Welcome change. Changing requirements should also be considered later in the development process. We deliver frequently. 3) Cooperate. 4) motivated team. 5) Face to face. 6) Working software. 7) constant pace.
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When the stock market as a whole is rising in value then it is referred to as a bear market. True or false?
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Answer: False
Explanation: A bear market is when a market experiences prolonged price declines. It typically describes a condition in which securities prices fall 20% or more from recent highs amid widespread pessimism and negative investor sentiment.
c. The building is immediately sold for $143,000 to give total cash of $206,000. The liabilities are then paid, leaving a cash balance of $153,000. This cash is to be distributed to the partners. How much of this money will each partner receive if profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 1:3:3:3 basis, respectively
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To calculate the amount of cash that each partner will receive, we need to first determine the total profit or loss of the partnership. We know that the total cash available after selling the building and paying off liabilities is $153,000. However, we do not know the total profit or loss of the partnership.
Assuming that the partners did not make any other transactions during the period, we can calculate the total profit or loss based on the sale of the building. If the building was sold for $143,000 and the partnership had initially purchased it for $100,000, then the profit on the sale would be $43,000.
Now that we know the total profit, we can allocate it among the partners based on their agreed upon profit and loss sharing ratios. According to the question, profits and losses are allocated to Adams, Baker, Carvil, and Dobbs on a 1:3:3:3 basis, respectively. This means that Adams will receive 1/10th (1/1+3+3+3) of the profit, while Baker, Carvil, and Dobbs will each receive 3/10ths of the profit.
Using this ratio, we can calculate each partner's share of the profit as follows:
Adams: 1/10 x $43,000 = $4,300
Baker: 3/10 x $43,000 = $12,900
Carvil: 3/10 x $43,000 = $12,900
Dobbs: 3/10 x $43,000 = $12,900
Adding each partner's share of the profit to their initial capital account balance will give us their total distribution amount. Assuming that each partner started with equal capital account balances of $10,000, their total distribution amounts would be:
Adams: $10,000 + $4,300 = $14,300
Baker: $10,000 + $12,900 = $22,900
Carvil: $10,000 + $12,900 = $22,900
Dobbs: $10,000 + $12,900 = $22,900
Therefore, Adams will receive $14,300, while Baker, Carvil, and Dobbs will each receive $22,900.
In conclusion, each partner will receive a distribution of cash based on their agreed upon profit and loss sharing ratio. By allocating the profit on the sale of the building based on these ratios, we can determine each partner's share of the profit and add it to their initial capital account balance to find their total distribution amount.
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