Portions of the financial statements for Peach Computer are provided below.
PEACH COMPUTER
Income Statement
For the year ended December 31, 2021
Net sales $1,800,000
Expenses:
Cost of goods sold $1,050,000
Operating expenses 560,000
Depreciation expense 50,000
Income tax expense 40,000
Total expenses 1,700,000
Net income $100,000
PEACH COMPUTER
Selected Balance Sheet Data
December 31
2021 2020 Increase (I) or Decrease (D)
Cash $102,000 $85,000 $17,000 (I)
Accounts receivable 45,000 49,000 4,000 (D)
Inventory 75,000 55,000 20,000 (I)
Prepaid rent 3,000 5,000 2,000 (D)
Accounts payable 45,000 37,000 8,000 (I)
Income tax payable 5,000 10,000 5,000 (D)
Required:
Prepare the operating activities section of the statement of cash flows for Peach Computer using the direct method.

Answers

Answer 1

Answer:

Net cash flows from Operating activities = $139,000

Explanation:

                                  Statement of Cash Flows

Cash-flows from Operating activities

Net income for the year                                          $100,000

Adjustment for non-cash effects

Depreciation expenses                        $50,000

Decrease in Accounts receivables      $4,000

Increase in Inventory                           -$20,000

Decrease in Prepaid rent                      $2,000

Increase in Accounts payable               $8,000

Decrease in Income tax payable         -$5,000        $39,000

Net cash flows from Operating activities               $139,000


Related Questions

Free if I am voted brainiest and like!
Next time will be Moree than 50.... :)

Answers

Answer:

huh?

what?

is this fReEeE?

A Virginia county is considering whether to pay $50,000 per year to lease a prisoner transfer facility in a prime location near Washington, D.C. They estimate it will cost $50 per prisoner to process the paperwork at this new location. The county is paid a $75 commission for each new prisoner they process. What would be the county's annual profit if they were to process 4,000 prisoners per year at this new location

Answers

Based on the information given  the county's annual profit if they were to process 4,000 prisoners per year at this new location is $50,000.

Annual profit=Total revenue-Total cost

Where:

Total revenue=(4,000×$75)=$300,000

Total cost=[(4,000×$50)+$50,000]=$250,000

Let plug in the formula

Annual profit=(4,000×$75)-[(4,000×$50)+$50,000]

Annual profit=$300,000-($200,000+$50,000)

Annual profit=$300,000-$250,000

Annual profit=$50,000

Inconclusion  the county's annual profit if they were to process 4,000 prisoners per year at this new location is $50,000.

Learn more here: https://brainly.com/question/13308210

You are considering the purchase of a stock that is currently selling at $64 per share. You expect the stock to pay $4.50 in dividends next year. a. If dividends are expected to grow at a constant rate of 3 percent per year, what is your expected rate of return on this stock? b. If dividends are expected to grow at a constant rate of 5 percent per year, what is your expected rate of return on this stock? c. What do your answers to parts (a) and (b) say about the impact of dividend growth rates on the expected rate of return on stocks?

Answers

Answer:

Price of a constant growth dividend stock is given by Price = D1 / (Re – G) Where, Price = Price of the stock = $64 D1 =…

select all that apply which of the following would be considered a source document in an accounting system? (check all that apply.) multiple select question. a) sales receipt b) checks c) purchase order d) budget e) payroll records

Answers

The terms that would be considered a source document in an accounting system are:

a) sales receipt

b) checks

c) purchase order

e) payroll records

What are source document in an accounting system?

Companies may also utilize a source document as evidence in negotiations with business partners, typically in connection with payments. Cancelled checks, credit memos, deposit slips, expense reports, invoices, material requisition forms, purchase orders, time sheets, and sales receipts are a few examples of source documents.

A source document provides all the essential details of the transaction, including the amount, the recipient, the reason for the transaction, and the date of the transaction. Checks that have been cancelled are typical source documents. Invoices.

Therefore, option A, B C and E are correct.

Learn more about accounting at:

https://brainly.com/question/26690519

#SPJ1

Do you agree that the social media channels and content creation technology consumers have at their disposal is actually a good thing as the speaker says? Why or why not?

Answers

Answer: Guy on the top is so wrong

Which of the following would appear in the cash flows from investing activities section of the statement of cash flows?
a. Cash received from stock issued
b. Cash received from bonds payable
c. Depreciation expense on equipment
d. Cash paid for equipment

Answers

The correct answer is:

d. Cash paid for equipment

Cash flows from investing activities include transactions related to the acquisition or sale of long-term assets such as property, plant, and equipment. Cash paid for the purchase of equipment would be categorized as an investing activity because it involves the outflow of cash for the acquisition of a long-term asset.


1. Cash price is $500. After making a down payment of $100, the payments are $50
a month for nine months.(A) total installment price, (B) amount of finance charge, (C) annual percentage rate. Solve for A,B, and C.
a.
b.
C.

Answers

Answer:

12.12%

Explanation:

Given:

Cash price = $500

Down payment = $100

Payments = $50 per month for 9 months

To find:

(A) Total installment price

(B) Amount of finance charge

(C) Annual percentage rate

Solution:

(A) Total installment price:

Total amount to be paid = Down payment + Payments for 9 months

Total amount to be paid = $100 + ($50 x 9)

Total amount to be paid = $550

Therefore, the total installment price is $550.

(B) Amount of finance charge:

The finance charge is the difference between the total amount to be paid and the cash price.

Finance charge = Total amount to be paid - Cash price

Finance charge = $550 - $500

Finance charge = $50

Therefore, the amount of finance charge is $50.

(C) Annual percentage rate:

To find the annual percentage rate, we need to use the following formula:

Finance charge = Total amount to be paid x Annual percentage rate x Time

Where time is the duration of the loan in years.

Since the loan is for 9 months, we need to convert it to years by dividing it by 12.

Time = 9/12

Time = 0.75 years

Substituting the given values, we get:

$50 = $550 x Annual percentage rate x 0.75

Annual percentage rate = $50 / ($550 x 0.75)

Annual percentage rate = 0.1212 or 12.12%

Therefore, the annual percentage rate is 12.12%.

The company would like to initiate an intensive advertising campaign in one of the two market segments during the next month. The campaign would cost $4,800. Marketing studies indicate that such a campaign would increase sales in the Medical market by $42,000 or increase sales in the Dental market by $36,000. Required: 1. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Medical Market? 2. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Dental Market? 3. In which of the markets would you recommend that the company focus its advertising campaign?

Answers

Answer:

1. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Medical Market?

We are missing the cost structure, so I looked for similar question. The company's current segment margin for the medical market is 30%. So this campaign would increase segment profit by $42,000 x 30% = $12,600. Since its cost is $4,800, net profit will increase by $12,600 - $4,800 = $7,800

2. How much would the company's profits increase (decrease) if it implemented the advertising campaign in the Dental Market?

The dental market's segment profit is 24%, so this campaign would increase revenue by $36,000 x 24% = $8,640. To calculate net profit we must again subtract the campaign's cost. Net profit = $8,640 - $4,800 = $3,840

3. In which of the markets would you recommend that the company focus its advertising campaign?

They should focus on the medical market since their profit will be higher.

Explanation:

The company would like to initiate an intensive advertising campaign in one of the two market segments

all of the following statements about self-judgments are true except one. which statement is false?

Answers

Due to the false consensus effect, we tend to see our own behavior as unique which is a statement about self judgement.

What is the false consensus effect?

Consensus prejudice, often referred to as the false consensus effect in psychology, is an ubiquitous cognitive bias that leads individuals to "perceive their own behavioural choices and judgments as relatively typical and appropriate to actual conditions." The false-consensus effect can be seen in people who mistakenly believe that their preferred political candidate has more support in the general public than other contenders. The propensity to think that our own attitudes, views, and conduct are typical is known as the false consensus bias. Numerous experimental findings have backed the false-consensus effect theory, which psychologists have frequently linked to the desire to perceive one's beliefs as proper, normal, and correct.

To learn more about the false consensus effect click,

https://brainly.com/question/27295089

#SPJ1

How often should you email your email list?

Answers

As long you feel the need!

If you liked this please give me the brainliest.

DEPENDS ON YOUR NEED

SO ACCORDING TO ME, IT DEPENDS UPON YOUR NEEDS IF YOU NEED TO U CAN EMAIL AROUND ONCE PER DAY BUT IF IT'S NOT THAT IMPORTANT YOU CAN JUST DO IT ACCORDING TO YOUR WISH IT CAN BE ONCE OR TWICE, OR THRICE A WEEK.

https://brainly.com/question/11337912?referrer=searchResults

At the market close on May 12 of a recent year, Sherman Corporation had a closing stock price of $110. In addition, Sherman Corporation had a dividend
per share of $5.39 during the previous year.

Answers

Sherman Corporation's dividend yield is 4.9%.

What is the dividend yield?

The dividend yield is the financial ratio that explains the percentage of a company's share price paid out in dividends annually.

Investors calculate the dividend yield to evaluate the potential investment company's ability to meet their financial needs, depending on their return expectations.

Some investors favor dividend-paying investments to maintain their financial strength.  Some other investors value investment growth more than dividend payments.

The formula for Dividend yield is Dividend per share divided by the current share price per unit, multiplied by 100.

Data and Calculations:

Stock price = $110

Dividend per share = $5.39

Dividend yield = 4.9% ($5.39/$110 x 100)

Thus, Sherman Corporation's dividend yield is 4.9%.

Learn more about dividend yields at https://brainly.com/question/20704820

#SPJ1

Question Completion:

Determine Sherman Corporation's dividend yield. (round to one decimal place)

operating principles of enterprises in a market economy

Answers

The operating principles of enterprises in a market economy include:

Profit MaximizationCompetition

What are the operating principles of enterprises in a market economy?

Enterprises in a market economy are primarily driven by the goal of maximizing profits. Profitability is considered a key measure of success, and businesses strive to optimize their revenues while minimizing costs.

Competition is a fundamental characteristic of a market economy. Enterprises operate in an environment where multiple players compete for market share, customers, and resources. This principle fosters efficiency and incentivizes businesses to continuously improve their products, services, and operations to gain a competitive edge.

Find out more on market economies at https://brainly.com/question/11471834

#SPJ1

Imagine you win $10,000 in a state competition and decide to invest your prize. First, determine your risk tolerance. Then, choose two investment options from the lesson for your money. Describe your investment plan in a detailed paragraph. Be sure to include responses to the following questions: • Why did you choose these two options? • How may taxes, fees, and inflation affect your investments? • How do your choices reflect your tolerance for risk? • How do you plan to divide your money between the two investment options you chose? Be sure to include the following terms in your explanation: o diversification o risk o rate of return o interest rate

Answers

Some possible investments that a person that won $10,000 make are:

CryptocurrenciesStocks

What is Risk Tolerance?

This refers to the ability of a person to be able to endure losses that can come from making an investment.

Hence, we can see that after making a good risk assessment to find the risk tolerance, if it is between medium to high, then it is advised to invest a good portion in cryptocurrencies and stocks and then put the remaining in a trust fund.

Read more about investments here:

https://brainly.com/question/25300925

#SPJ1

2. Grocers Absorb Rise in Food Prices to Keep Customers From Straying Dec. 17, 2017 7:00 a.m.
ET: Retailers hold line on prices, fearing they will lose business to discounters and new rivals online
Food costs are ticking up after a multiyear glut of many staples. But consumers aren't paying
much more yet because grocers, discounters and online retailers are all holding down prices to win
business. Many grocers are investing in e-commerce operations to keep up with Amazon.com Inc., which
has slashed prices on products including avocados, organic milk and chicken since it acquired Whole
Foods Market this summer. "Price competition is getting more severe," said Kemper Isely, co-president of
the Colorado-based Natural Grocers by Vitamin Cottage Inc., a health-food chain that competes with
Whole Foods in the West. The chain has cut prices this year in part to try to beat Whole Foods discounts.
Considering grocers, how can you apply price elasticity of demand to this situation?

Answers

Oaowowkwjsjsjma wskmw

Actto inc. has issued a $500 bond with 10 years to maturity. The company promises to make coupon payments of $10 every 3 months. What is the bond' coupon rate?

Answers

$ 100 I think hope is help

The original purpose of counties was to?​

Answers

Answer:

The original purpose of the counties was to establish an intermediate governmental structure between that of the cities and that of the states, bringing together several cities in a single entity, the County, which would centralize basic services such as courts, hospitals, universities, etc. and it would represent these cities before the State in a more forceful way than if each city did so on its own initiative.

Anthony and Michelle Constantino just got married and received ​$39000 in cash gifts for their wedding. How much will they have on their​ twenty-fifth anniversary if they place half of this money in a​ fixed-rate investment earning 6 percent compounded​ annually? Would the future value be larger or smaller if the compounding period was 6​ months? How much more or less would they have earned with this shorter compounding​ period?

If they place half of this​ money, PV, in a fixed-rate investment earning 6 percent compounded​ annually, the amount they will​ have, FV, on their​ twenty-fifth anniversary is ​$____ . ​(Round to the nearest​ cent.)

Answers

Answer:

83,691.48

Explanation:

39000/2 = 19,500

19,500 x 1.06 (6%) 25 times

3. Each time you sell a stock to make a profit, you must pay tax on the money you
make (the difference between the buying and selling price). This is called capital
gains tax. Do you think capital gains tax is a good idea? Why or why not? (10
points)

Answers

Capital Gains Tax from the perspective of public adminstration is a good idea.

Why is capital gains tax important?

Capital gains are earnings obtained through the sale of an investment, such as stocks, bonds, or real estate. Capital gains taxes are lower than conventional income taxes, giving investors an edge over wage earners.

Capital gains taxes provide money for the government while accounting for economic costs.

Capital gains are taxed based on when they are realized. The conclusion is that the tax is only levied when investors opt to remove their investment from the market, resulting in capital gain.

Learn more about capital gains tax at:

https://brainly.com/question/32136200

#SPJ1

Choose the cultures that display the Latin American enthusiasm for dance. Brazil Mexico Scotland Wales

Answers

Answer:

Mexico and Brazil

Explanation:

They are both countries known for Latin America

A plant asset cost ₤320,000 and is estimated to have a ₤40,000 residual value at the end of its 8-year useful life. The annual depreciation expense recorded for the third year using the double-declining-balance method would be?

Answers

Depreciation is the process of allocating the price of a plant asset to expense in the accounting periods benefiting from its use.

How is the whole depreciation of a plant asset calculated?

Determine the value of the asset. Subtract the estimated salvage price of the asset from the cost of the asset to get the whole depreciable amount. Determine the beneficial lifestyles of the asset. Divide the sum of step (2) by using the wide variety arrived at in step (3) to get the annual depreciation amount.

Depreciation is the technique of allocating to expense the cost of a plant asset over its beneficial (service) existence in a rational and systematic manner. Such cost allocation is designed to desirable in shape prices with revenues.

Learn more about Depreciation here:

https://brainly.com/question/28108679#SPJ1

Question 1 (5 marks) Maximum word count: 100 words 4 Due to an increased advertising effort about the positive effect of activated charcoal in beauty products, consumers in South Africa are eage to buy beauty products that contain this ingredient. Explain how this will affect the market for activated charcoal. You are allowed to use a diagram to explain your answer, but you will only be allocated marks for the correct verbal explanation.​

Answers

The answer is, The market for activated charcoal will expand as a result of increased demand for beauty products containing this ingredient, leading to higher prices and greater quantities supplied.

The reasons for this to happen are-

The market for activated charcoal will change as a result of the rise in demand for cosmetics incorporating activated charcoal in South Africa.The demand curve for activated charcoal will change to the right, indicating a rise in demand across the board.Also, Between 2022 and 2028, the market for global charcoal beauty products is predicted to grow significantly. The market is estimated to increase during the anticipated time frame in 2021 because major companies are adopting strategies at an increasing rate.The result for this increased demand would be-

Customers will be increasingly inclined to pay more for these goods as they become more aware of the advantages of activated charcoal in beauty products.

To satisfy the greater level of demand, producers will raise their output of activated charcoal in response to the rise in demand.

To know more about Demand visit:

https://brainly.com/question/29761926

#SPJ1

Select the education and qualifications that are most helpful for Warehousing and Distribution Center Operations careers. Check all that apply.

high school degree
stamina
leadership
patience
concentration skills
associate degree
creativity

Answers

Answer:

High school degree

Stamina

Patience

Concentration skills

Explanation:

Just did it on edg.

The education and qualifications that are most helpful for Warehousing and Distribution Center Operations careers are:

High school degreeStaminaPatienceConcentration skillsWhat is Warehousing and Distribution Center Operation?

Distribution centers offer value-added services such product mixing, order fulfilment, cross-docking, kitting, and packing in addition to the primary function of storing items in warehouses. Distribution centers, in contrast to warehouses, also only keep the necessary quantity of goods for a shorter amount of time.

Because they primarily support B2B enterprises as a conduit between suppliers and customers, distribution centers are more customer-centric. Distribution centers are in charge of effectively meeting customer demands and expectations; warehouses are in charge of safely keeping products.

Operations at distribution centers are therefore more complicated than those at warehouses. Distribution centers use state-of-the-art technology for order processing, inventory management, warehouse management, and transportation management.

Define concentration.

"The ability to direct your thinking in any direction you choose and to hold it for as long as you choose" is the definition of concentration.

Concentration is the capacity to narrow the field of awareness to one particular idea or subject while rejecting all other distractions.

One of the most crucial skills anybody should have is the capacity to concentrate. However, the majority of people find it difficult to focus. They frequently can't focus on one thing for a reasonable amount of time since their attention tends to wander.

This is a problem that can be solved. The capacity for concentration can be improved, just like any other talent. A person who practices mental discipline may concentrate without being interrupted by thoughts, sounds, or anything else.

While you might occasionally appear to be reading or concentrating on your work, if your attention is diverted you probably won't be able to retain the information for long enough to use it properly to produce something intelligible.

If you find the subject matter to be "boring," you're too sleepy or hungry, you have too much on your plate, you lack motivation for a long-term or short-term goal, or you're very concerned or worried and easily distracted, your ability to focus may be affected.


To learn more about concentration, click here

https://brainly.com/question/4184101

#SPJ2

The Consumer Product Safety Commission (CPSC) does not
O have seven commissioners
O appoint its commissioners for seven-year terms
O ensure that products have adequate warnings and instructions
O represent an independent regulatory commission

Answers

No independent regulatory body is represented by the Consumer Product Safety Commission (CPSC).

What is the product?

The object being sold is referred to as a product. A service or an object both qualify as products. It could take on a physical, virtual, or cyber form. Every product has a cost associated with it, and each one has a price. The market, the quality, the marketing, and the group that is being targeted all affect the price that can be charged.

A safe product is one that, while taking into account the regular or reasonably anticipated usage of the product and the requirement to maintain a high degree of protection for consumers, offers either no risk or a minimum tolerable level of risk.

The Consumer Product Safety Commission (CPSC) protects the public from unreasonable risks of serious injury or death from thousands of types of consumer products under its jurisdiction, including products that pose a fire, electrical, chemical, or mechanical hazard or can injure .

Therefore, Thus option (D) is correct.

Learn more about products here.

brainly.com/question/22852400

#SPJ1


Which of the following types of accounts have a normal credit balance?
assets and liabilities
revenues and capital
capital and drawing
liabilities and expenses

Answers

Answer:

Liabilities and expenses

Explanation:

Liabilities and expenses are mostly thee ones that have a normal credit balance

Principles of Investment
Assignment Active
Monetary Policy and Investments
Juan is always researching different investment options.
A few weeks ago he noticed some nice homes for sale in
his neighborhood. The listed prices were below market
value. Today on the news he heard that the Federal
Reserve lowered interest rates for banks and that banks
have lowered interest rates for home mortgages in turn.
As a result, there has been a huge boom in the number of
people purchasing homes.
What is most likely to happen as a result of the
change in interest rates?
O Housing prices will go up and down due to
changing fiscal policy.
O The market will experience more demand and the
price of houses will go up.
O The price of houses will go down in response to the
decreased demand.
O The prices for homes in that area will be stable due
to the new monetary policy.
4

Answers

As a result of the decrease in interest rates, Option B. The market will experience more demand, and the price of houses will go up.

The demand for houses will go up and housing prices will increase, causing individuals who were on the fence about buying a house to act swiftly before prices rise too much. As a result, housing sales are expected to surge. Lower interest rates, on the other hand, are often linked to increased borrowing and spending in the economy. Because borrowing money is now less expensive, more people are more willing to do so and the money supply in circulation rises.

The decrease in interest rates could cause more individuals to be more willing to purchase a home due to lower interest rates and more affordable mortgage payments. Lowering interest rates for banks and home mortgages, as well as lowering the cost of borrowing, encourages more people to buy houses, resulting in a greater demand for homes and, in turn, driving up the prices of homes.

As a result, option B is correct: the market will experience more demand, and the price of houses will go up. Therefore, the correct option is B.

The question was incomplete, Find the full content below:

Juan is always researching different investment options. A few weeks ago he noticed some nice homes for sale in his neighborhood. The listed prices were below market value. Today on the news he heard that the Federal Reserve lowered interest rates for banks and that banks have lowered interest rates for home mortgages in turn. As a result, there has been a huge boom in the number of people purchasing homes. What is most likely to happen as a result of the change in interest rates?

A.  Housing prices will go up and down due to changing fiscal policy.

B. The market will experience more demand and the price of houses will go up.

C. The price of houses will go down in response to the decreased demand.

D. The prices for homes in that area will be stable due to the new monetary policy.

Know more about Interest rates here:

https://brainly.com/question/29415701

#SPJ8

When should a transfer of receivables be recorded as a sale? The buyer surrenders control of the receivables to the seller. The transferor does not maintain effective control over the transferred assets through an agreement to repurchase or redeem them prior to their maturity. The transferor maintains effective control over the transferred assets through an agreement to repurchase or redeem them prior to their maturity. The transferred assets are isolated from the transferor.

Answers

Answer:

The transferor does not maintain effective control over the transferred financial asset or third party beneficial interest in the asset.

Explanation:

The code for transfer of receivable provisions, allows creditor of a debt to have the right to transfer his/ her receivable right to another person, provided that the transaction is permitted by the law/ contract nature of business. Transfer of receivables permit the third person/ party to be included in the relationship that exist between debtor and creditor, and this allows him/ her to near the title of creditor.The receivable must be an existing one before the receivable transfer can be possible. It should be noted that for transfer of receivables be recorded as a sale, The transferor does not maintain effective control over the transferred financial asset or third party beneficial interest in the asset.

Receivables, also defined as accounts receivable, are debts outstanding to a company by customers for goods or services that have been used or produced but have not yet been paid for.

Receivables are produced when a corporation extends a line of credit to a client, and they are recorded as current assets on the balance sheet.

The transferor has no effective control over the transferred financial asset or even the asset class third-party advantageous interest.

The reason for the correct answer is:

The code for transfer of receivable provisions permits a borrower's creditor to transfer his or her receivables right to another person if the transaction is permitted by law/contract nature of business.

Transfer of receivables permits a third party to be included in the debtor-creditor relationship, allowing him or her to come close to holding the title of creditor.

Before a payable transfer may actually occur, the receivable should already exist.

It is important to focus on in order for a transfer of receivables to be recorded as a sale, the grantor must not have effective control over the transmitted capital product or a third-party advantageous interest in the asset.

To know more about the transfer of receivables be recorded as a sale, refer to the link below:

https://brainly.com/question/933028

Your house get $7,250 in damage. You have a $500 deductible.
How much will the insurance write you a check for?
O $500
O$7,000
O$6,750
7,750

Answers

Answer: 6750

Explanation:

7250-500 = 6750

James has a large farm. He often gets together with a nearby neighbor who raises chickens. When they meet that trade vegetables for chicken and eggs. No money changes hands. They have made trades like this since their parents own the land and have continued the trades. What type of economy is being described?

Answers

can you answer the question in blue please

Beverly Mills has decided to lease a hybrid car to save on gasoline expenses and to do her part to help keep the environment clean. The car she selected is available from only one dealer in the local area, but that dealer has several leasing options to accom-modate a variety of driving patterns. All the leases are for 3 years and require no money at the time of signing the lease. The first option has a monthly cost of $330, a total mileage allowance of 36,000 miles (an average of 12,000 miles per year), and a cost of $0.35 per mile for any miles over 36,000. The following table summarizes each of the three lease
options:
(See photos below)

Beverly Mills has decided to lease a hybrid car to save on gasoline expenses and to do her part to help

Answers

Beverly Mills has three leasing options to choose from. Each of these options differs in terms of the monthly cost, the total mileage allowance, and the cost for any miles over the set mileage allowance. Depending on her driving patterns, Beverly Mills can select the option that suits her the best.

Beverly Mills decided to lease a hybrid car to save on gasoline expenses and to do her part to help keep the environment clean. The car she selected is available from only one dealer in the local area, but that dealer has several leasing options to accommodate a variety of driving patterns.All the leases are for 3 years and require no money at the time of signing the lease.

The three lease options available to Beverly Mills are as follows:

Option 1:Monthly cost: $330Total mileage allowance: 36,000 miles (an average of 12,000 miles per year)Cost for any miles over 36,000: $0.35 per mile

Option 2:Monthly cost: $460Total mileage allowance: 45,000 miles (an average of 15,000 miles per year)Cost for any miles over 45,000: $0.45 per mile

Option 3:Monthly cost: $540Total mileage allowance: 60,000 miles (an average of 20,000 miles per year)Cost for any miles over 60,000: $0.55 per mile

Therefore, Beverly Mills has three leasing options to choose from. Each of these options differs in terms of the monthly cost, the total mileage allowance, and the cost for any miles over the set mileage allowance. Depending on her driving patterns, Beverly Mills can select the option that suits her the best.

For more such questions on allowance

https://brainly.com/question/14191260

#SPJ8

A decision-maker faces the following decision under conditions of uncertainty. This decision-maker has $1 million in assets. Most of those assets, $750,000, are the individual’s equity in his house. The remaining $250,000 are absolutely secure. Unhappily, there is a risk that the individual’s house will burn down in a fire, which would be a total loss of the $750,000. The individual can insure his house against the loss from this fire. The premium for the insurance is $40,000, and it will insure the individual completely; that is, if the individual chooses to purchase this insurance policy, his assets will be $960,000, whether or not there is a fire. (There is no mortgage on the house, so $750,000 is the full amount paid by the insurance company.) The probability of a fire is 0.05.

Required:
a. What is the expected net earnings, the premium less the expected amount paid out to the client, to the insurance company from this policy?
b. If the individual in question were risk neutral, would he buy this insurance policy?
c. If the individual in question is an expected utility maximizer, with the utility function u(a) = where a is the individuala's total assets, would this individual buy the insurance?

Answers

Answer:

The correct Answer Is C,

Explanation:

I got It Right :)

A- The net earnings of the individual in question will be $710000 after the individual's claim for loss by fire is settled by the insurance company. B- Yes, he would buy the insurance if he were risk neutral.

C- Yes, the individual will buy the insurance policy if he were a expected utility maximizer as he would want to claim complete settlement of this amount to be claimed in case of fire loss.

The expected net earnings from the insurance after deducting the amount from the premium paid and total claim endorsed by the insurance company will be $710000 which can be shown as below

\(\rm Net\ earnings= claim\ received - premium\ of\ policy\)

\(\rm Net\ earnings= 750000-40000\)

We get,

\(\rm Net\ earnings= 710000\)

If the individual were risk neutral he would like to take the insurance as the risk of fire in the example given above is 0.5 which is greater than zero and this ultimately implies that risk cannot be taken.

In the case if the individual is expected utility maximizer he would take the insurance as it would not only give him the claims from losses due to fire but also help him secure his house against beta of fire.

Hence, the correct answers will be A- $710000; B- Yes.; C- Yes. and imply that taking insurance will be a wise decision by the individual.

To know more about insurance policy , click the link below.

https://brainly.com/question/24984403

Other Questions
the length l cm of a sheet of paper is 29.7 cm,corredt to the nearest millimetre complete this statement about the value of l It is only likely for a guest to receive outstanding service at luxury brands. That's why Ritz-Carlton, Mandarin Oriental, Four Seasons, and others are the best at what they do. Brainliest if correct How much is 45 cm to inches? Solve for the value of p.(6p+3) (9p-3) Identify each of the following statements as either true or false a. A voucher system of control is a control system exclusively for cash receipts b. Separation of duties eliminates the possibility of collusion to steal an asset and hido the theft from the records c. Good internal control is to have only one employee be assigned the task of opening mail d. A petty cash system of control is a system used only for cash receipts. Which shape has 5 faces, 8 edges and 5 vertices? A portable power source is available for travelers who need electricity forappliances. The power scurce provides 54 W of power to operate an aircompressor for inflating tires. This compressor draws 4.5 A of current whenconnected to the power supply. What is the voltage across the compressor? a system of justice based on the maximin principle which states that morality requires that society needs to maximize the utility of the worst off person in society The period of a simple pendulum on the surface of Earth is 2.27 s. Determine its length L. E Combine like terms to write the expression in simplest form.42? + 5y? 2 - 3y3y learning task 5:Need help pls for tomorrow :( Heat-killed pneumococcus s-cell extract that has been treated with rnase (i.e. ribonuclease) ______ (does or does not) transform r-cells into s-cells. the conclusion that can be drawn from this is that____. When colleen first learned the word "ominous," she pictured a large, dark cloud to help her remember its meaning. Which term best describes this example?. what is this answer plz Select the correct answer.A narrative essay is similar to writing which other type of literary piece?A. a poemB. a short storyC. a reportD. a letter Determine the % composition of Hydrogen for the following: C6H12O6 Which of the following are examples of sexual reproduction?1. A piece of a starfish is broken off and grows into a new starfish in a process called regeneration.2. A pollen grain from one flower fertilizes another flower, resulting in the development of a seed.3. A yeast offspring grows out of the body of its parent in a process called budding. A bacterium copies its DNA and divides into two daughter cells in a process called binary fission.4. A frog releases sperm over eggs that were laid by another frog, and these cells fuse together. For a random sample of 100 students, the mean cost for textbooks during the first semester of college was found to be $369.75, and the sample standard deviation was $38.09. Assuming that the population is normally distributed, find the margin of error of a 90% confidence interval for the population mean The margin of error for a 90% confidence interval is (Round to two decimal places as needed.) In the figure, AOB is a straight line. Find the value of x.