In order to calculate a person’s savings ratio, the amount saved each month is divided by net income. Why is this False? Explain your answer and cite sources please
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In order to calculate a person’s savings ratio, the amount saved each month is divided by net income.
Why is this False?
Explain your answer and cite sources please
Step by step
Solved in 1 steps
- Calculate the income before income taxes and net income/less. Please show how you got your answer.Calculate Brisky's Net Income.CHAPTER 2 ASSIGNMENT Your client is having trouble figuring out where all her money goes each month. Here is her financial information for you to review: $355* STOCKS IN BROKERAGE ACCT $5,500 MASTER CARD BILL $245* MONTHLY PAYCHECK (GROSS) $3,000 PAYROLL TAX WITHHELD $ 600 MONTHLY MORTGAGE PAYMENT $530 MUTUAL FUNDS $2,100 401(K) RETIREMENT ACCT $4,500 $265 $275* SAVINGS ACCT BALANCE $2,300 MONTHLY CLOTHING EXPENSES $45 MONTHLY VISA BILL MONTHLY CAR PAYMENT MONTHLY UTILITY BILL CHECKING ACCOUNT BALANCE QUARTERLY AUTO INSURANCE (NOT YET DUE) ANTIQUE COIN COLLECTION CONDOMINIUM MONTHLY GROCERIES AUTOMOBILE FURNITURE MORTGAGE BALANCE AUTO LOAN BALANCE OTHER PERSONAL PROPERTY OTHER MONTHLY CASH EXPENSES ANNUAL MEDICAL EXPENSES *Bills represent the average of the prior month's charges AND ALSO current month's expenses. $825 $450 $3,250 $65,000 $225 $9,000 $5,500 $50,000 $4,225 $8,000 $150 $264
- Explain the idea of mental accounting. Group of answer choices Mental accounting refers to the way we emotionally account for ups and downs of our lives. Mental accounting refers to the interest rate we use when we calculate the present value of future mental assets. Mental accounting is the way people keep track of their mental assets and liabilities. Mental accounting is the notion of putting dollars in different mental categories where they take different values.Utility refers to Group of answer choices the total of your spending for the year the satisfaction you receive from purchasing something. how much money you receive during the year the value of your investments at any given timeWhat are age of receivables and how do you calculate them? Please explain.
- Benefits of a savings account for borrowers ?Explain when EXACTLY you would prefer the previous balance method to the average daily balance including new purchase s method in determining your finance charge.Which of the following is included in the calculation of the quick (acid-test) ratio?a. Inventory and short-term investmentsb. Inventory and prepaid expensesc. Cash and accounts receivabled. Prepaid expenses and cash
