As loan analyst for Second Bank, you have been presented the following information.

Pink Co. Blue Co.
Assets
Cash 120,000 320,000
Receivables 220,000 302,000
Inventories 570,000 518,000
Total current assets 910,000 1,140,000
Other assets 500,000 612,000
Total Assets 1,410,000 1,752,000
Liabilities and Stockholder's Equity
Current liabilities 305,000 350,000
Long-term liabilities 400,000 500,000
Capital Stock and Retained Earnings 705,000 902,000
Total liabilities and Stockholder's equity 1,410,000 1,752,000

Annual Sales 930,000 1,500,000
Rate of Gross Profit on sales 30% 40%

Each of these companies has requested a loan of $50,000 for 6 months with no collateral offered. In as much as your bank has reached its quota for loans of this type, only one of these requests is to be granted.

Question:
Which of the two companies, as judged by the information given above, would you recommend as the better risk and why? Assume that the ending account balances are representative of the entire year.

I have the work done...I just need to check my work. I would appreciate any help as soon as possible.

As Loan Analyst For Second Bank, You Have Been Presented The Following Information. Pink Co. Blue Co.Assets

Answers

Answer 1

Based on the computed liquidity ratios below, the loan should be advanced to Blue Co. It has better performing liquidity ratios than Pink Co.

What are liquidity ratios?

Liquidity ratios assess a company's ability to pay off its short-term liabilities. Liquidity ratios determine how quickly a company can convert assets and use them to pay off debts. The higher the ratio, the easier it is to clear debts and avoid payment defaults.

Current Ratio = Current assets/Current liabilities

                                                 Pink Co.                              Blue Co.

Current Ratio               $910,000/$305,000         $1,140,000/$350,000                                

                                                 = 2.98                               = 3.25

Quick Ratio =  (Current assets - Inventory)/Current liabilities

                                           Pink Co.                         Blue  Co.

Quick Ratio    910,000-570,000/305,000       1,140,000-518,000/350,000

                                          = 1.11                                         =1.77

Operating Cash Flow Ratio = Cash/Current liabilities

                                                           Pink Co.                           Blue Co.

Operating Cash Flow Ratio = $120,000/$305,00  $320,000/$350,000

                                               = 0.39                                = 0.91

Therefore, Blue company is at better risk due to high liquidity ratios.

To learn more about liquidity ratios, click here:

https://brainly.com/question/30065467

#SPJ1


Related Questions

Which of the following social media options is best for a company wishing to present more of a "story" of the business, one that is less factual but more emotional?

Microblogging
Photo sharing
Text or email
Video sharing

Answers

Video sharing, of the following social media options is best for a company wishing to present more of a "story" of the business, one that is less factual but more emotional. Thus, option (d) is correct.

What is business?

The most of the business are the used this extemporaneous style of speaking is chance to the employer and employee to the participation of the answering the question about the current project and business policies.

According to the social media is a term used to describe online communication. Social media systems enable users to have discussions, exchange information, and create content for the internet. The business was the improved as the emotional story to the share as the best choice was the video sharing.

As a result, the video sharing is the best option. Therefore, option (d) is correct.

Learn more about on business, here:

https://brainly.com/question/15826604

#SPJ1

In the financial abbreviation APR, the A stands for _______. a. approved, b. annual, c. actual, d. average

Answers

APR

The answer is option B: "annual."

APR stands for "Annual Percentage Rate." It is a term used to describe the annualized interest rate charged on a loan or credit card. APR is a measure of the cost of borrowing money and is expressed as a percentage. It includes not only the interest rate on the loan, but also any additional fees or charges that may be associated with borrowing the money. The APR helps borrowers compare the costs of different loans and credit cards, as it reflects the true annual cost of borrowing money.

Hope This Helps You!

Which provides the best example of a company policy which addresses attendance and time off?

A company requires all employees to file vacation day requests first with the human resources department and then with their supervisors.
A company uses a system for promotions that evaluates candidates based on achievements and without knowledge of the candidate's gender or race.
A company requires all employees to file vacation day requests first with the human resources department and then with their supervisors.
A company requires all incoming job candidates to complete a screening for illegal and certain legal substances before hiring.

Answers

All employees must submit requests for vacation days to the human resources office first, then to their managers. Consequently, the optimal choice is (D).

What is a time and attendance policy?

For your business to run smoothly, you must have a time and attendance policy, which is a list of guidelines for your employees on when to report for duty and under what conditions they may be excused.

It promotes a professional workplace. It promotes efficiency. Setting expectations for workers makes it easier for them to comprehend the duties they will be responsible for.

No of the nature of your company, the sector in which you work, or the location of your office, you must have a time and attendance policy for your staff.

Hence, option (D) is accurate.

Learn more about attendance policy, from:

brainly.com/question/23466483

#SPJ1

Anastasia is a principal who is responsible for telling one of her teachers that the school will be cutting her Spanish program in the fall. She has been friends with this teacher for years and knows that the teacher will be very upset. What is the most appropriate communication channel for Anastasia to choose to share this news with the teacher in this scenario?

Question 2 options:

She should send the teacher a formal, typed letter.


She should talk to the teacher face-to-face.


She should send the teacher a text message.


She should post the news on the school website.

Answers

Answer she should talk to her face to face

Explanation:

if she respects this woman that is the best way to keep it

what is federal housing administration?

Answers

The Federal Housing Administration (FHA) is a U.S. government agency that provides mortgage insurance on mortgages made by FHA-approved lenders. The FHA was created in 1934 as part of the National Housing Act, and its purpose is to provide mortgage insurance on loans made by private lenders for the purchase of homes. This insurance helps to protect the lender against loss if the borrower defaults on the loan, and it allows borrowers who might not otherwise qualify for a conventional mortgage to purchase a home. The FHA does not actually make loans, but instead it insures mortgages made by private lenders, meaning that if the borrower defaults on the loan, the FHA will pay the lender.

To learn more about federal housing administration:-

https://brainly.com/question/19710974

Communication which occurs via a mass
email would fall under which category?
A. a synchronous
C. horizontal
B. vertical
D. synchronous

Answers

Mass email communication is considered to be synchronous communication. The correct answer is option (d).

What is synchronous communication?

Real-time communication among two or more parties is referred to as synchronous communication. A synchronous communication interaction is essentially a live, interactive conversation between two parties. A continuous and constant timed transmission of data blocks is referred to be synchronous. When a lot of data has to be transported fast from one place to another, these connections are employed.

Synchronous is a generic term used to describe events that take place simultaneously. Face-to-face conversation and video chatting are examples of synchronous communication since they entail real-time back and forth. Instant messaging, video conferencing, and phone calls are synchronous communication examples.

To know more about synchronous communication, visit:

https://brainly.com/question/717130

#SPJ1

1. When the quantity supplied cannot be increased, regardless of what the price may be, it is called
Operfect inelastic supply
O elasticity of price
O inelastic supply
O elastic supply

Answers

When the quantity supplied cannot be increased, regardless of what the price may be, it is called perfect inelastic supply. Thus the correct option is A.

What is Supply?

Supply is referred to as making the availability of the demanded object in the market. This can be goods, commodities, or currencies as well. If the supply of demanded goods is not fulfilled it reflects scarcity.

Quantity supplied remains static regardless of price changes, which is referred to as perfectly inelastic supply. it is a circumstance in which businesses are only capable of providing a fixed number and are therefore unable to increase or decrease the amount regardless of price changes.

Therefore, option A is appropriate.

Learn more about perfect inelastic supply, here:

https://brainly.com/question/28192591

#SPJ1

When must you wash your hands

Answers

Answer:

Before, during, and after preparing food. Before and after eating food. Before and after caring for someone at home who is sick with vomiting or diarrhea. Before and after treating a cut or wound.

wash your hands before and after always and preferably with antibacterial soap

Benny’s Arcade has six video game machines. The aver-
age time between machine failures is 50 hours. Jimmy, the

maintenance engineer, can repair a machine in 15 hours
on average. The machines have an exponential failure
distribution, and Jimmy has an exponential service-time
distribution.
a. What is Jimmy’s utilization?
b. What is the average number of machines out of service,
that is, waiting to be repaired or being repaired?
c. What is the average time a machine is out of service?

Answers

Jimmy's utilization is 30%, The average number of machines out of service that is, waiting to be repaired or being repaired is 43%, and The average time a machine is out of service is 21.43 hours.

What do you mean by Service rate?

Service rate is used to calculate the rate or supply of service in any business.

Data given ;

Arrival rate (λ) = 1/50

Service rate (µ ) = 1/15

a) Utilization (P) = λ/µ

= 1 / 50 / 1 / 15

= 15 / 50

= 0.30

= 30%

b) Average number of out-of-service machines waiting to be repaired or being repaired (L) = q / λ

= (p²/1-p) / λ

= (0.30²/1-0.30) × 1/50

= 0.129 × 1/50

= 6.43

Average time spent by out-of-service machines waiting to be repaired, or being repaired

W = Wq + 1 / µ

= 6.43 + 15

= 21.43

The average number of machines out of service that is, waiting to be repaired or being repaired

L = λW = 21.43/50 = 0.43

3:00

c) Average time spent by out-of-service machines waiting to be repaired, or being repaired.

W = Wq + 1 / µ

= 6.43 + 15

= 21.43

Therefore, Jimmy's utilization is 30%, The average number of machines out of service that is, waiting to be repaired or being repaired is 43%, and The average time a machine is out of service is 21.43 hours.

Learn more about Service rate, here;

https://brainly.com/question/15544714

#SPJ1

1. If the consumption function is C = 100 + 0.75Y, I = 300, Tax (T)= 400 and government spending (G) is 600, what will be the equilibrium level of output? Demonstrate your answer with a Keynesian cross diagram. What happens to aggregate output if government spending (G) and Tax (T) rises by 200?

Answers

Answer:

Explanation:

The consumption function C = 100 + 0.75Y represents the relationship between consumption and disposable income, where C is consumption and Y is disposable income. The equation tells us that for every dollar of disposable income, consumers will spend 75 cents on consumption.

The equilibrium level of output is determined by the intersection of the aggregate demand (AD) and aggregate supply (AS) curves. The AD curve can be derived by adding together the planned consumption, planned investment, planned government spending and planned net exports. In this case, we have:

AD = C + I + G + NX = C + 300 + 600

The aggregate demand equation becomes AD = 100 + 0.75Y + 300 + 600

The aggregate supply equation represents the relationship between the quantity of goods and services produced and the price level, assuming a fixed level of technology and input prices. For this problem, we are assuming that aggregate supply is perfectly inelastic, meaning it does not change with price level.

Given that G = 600 and T = 400, disposable income will be Y = T + Tr(Y-T) = 400 + 0.8(Y-400)

Therefore, we have the equations:

AD = 100 + 0.75Y + 300 + 600

Y = 400 + 0.8(Y-400)

We can now solve for Y by substituting the second equation into the first:

100 + 0.75(400 + 0.8(Y-400)) + 300 + 600 = Y

Solving for Y, we find that the equilibrium level of output is Y = 2200.

In a Keynesian cross diagram, this point would be represented by the intersection of the AD and AS curve.

If government spending (G) and Tax (T) rises by 200, the AD curve shifts to the right. This means that the aggregate demand for goods and services is increasing, which causes an increase in the equilibrium output. The new equilibrium output (Y) will be greater than 2200 and can be found by solving for the new AD function. With the new AD function, the new output Y can be found by using the same steps that you have done above.

It's worth noting that in the above scenario, We are assuming that the aggregate supply is perfectly inelastic, this means that the price level is constant, if the aggregate supply is elastic, then an increase in AD will also lead to an increase in price level, this is known as inflation, which will affect the value of Y.

Which project management tool considers the longest time the completion of a sequence of activities might take?
To manage project activities, operations managers can calculate the ____ , which is a sequence of activities, the completion of which takes the longest time.

Answers

Which project management tool considers the longest time the completion of a sequence of activities might take?

To manage project activities, operations managers can calculate the ____ , which is a sequence of activities, the completion of which takes the longest time.

The project management tool that considers the longest time the completion of a sequence of activities might take is called the critical path. The critical path is a sequence of activities, the completion of which takes the longest time, and it determines the minimum amount of time required to complete a project. It is used to identify the most critical activities in a project and to ensure that they are completed on time in order to meet project deadlines. The critical path is determined by analyzing the dependencies between activities and the time required to complete each activity. By focusing on the critical path, project managers can ensure that the most important activities are prioritized and that the project stays on schedule.

Which of these is NOT considered an "out-of-pocket" expense?
O Your monthly premium
O A copay of $15 to fill a prescription
O A $1000 deductible if you're in an auto accident
O Excess bills from a car accident once you've gone over your maximum coverage limit

Answers

Answer:

c

Explanation:

a $1000 deduct because your insurance covers it.

1.Critically evaluate how success and failure in practice of basic management functions affect the organization. Support with real local examples.

Answers

Most often, the success and failure of the basic management functions of the organization rest on an effective or ineffective manager, who is in charge of the basic management functions.

How does basic management functions affect the organization?

An organization's effective management entails the ability to plan, organize, lead, and control resources in order to achieve its goals and objectives. When these management functions are carried out successfully, the organization's efficiency, productivity, and overall performance are likely to improve.

As a result, a well-organized organization with a clear chain of command and decision-making process will be able to respond to challenges and opportunities more effectively.

However, when basic management functions are not carried out successfully, it can have a negative impact on the organization. Poor planning can waste resources and lead to missed opportunities, whereas disorganized systems and processes can lead to inefficiencies and confusion.

Read more about management function

brainly.com/question/17083312

#SPJ1

You are provided two problem statements below (Homework Problem 1). For each, provide a score on a scale of 1 to 10 with 10 being best. Provide justification for each score that you gave.
Example Problem Statements
We want to improve employee performance in the Human Resources (HR) department.
We want to improve sales revenue by 10%

Answers

To provide a score on a scale of 1 to 10 on the problem statements, as per the examples, we can score as follows:

Improve the performance of HR employees, score 9, as this is a problem that affects the entire organizational system.Improve sales revenue by 10%, grade 7, as sales revenue can be improved in the period according to commemorative dates.What are organizational problem statements?

They correspond to an analysis of the organizational environment to understand what are the greatest needs for improvement, control and revision, to eliminate production bottlenecks, lack of integration and organizational flow.

Therefore, the problem statements in an organization help in managing more aligned to the reality of the company, such as its resources, monitoring and review of the processes that are responsible for making the company successful and positioned in the market.

Find out more about problem statements on:

https://brainly.com/question/25923602

#SPJ1

The difference between a​ business's revenues and its expenses is known as its​ _______.

Answers

Answer:

Net income,

also known as the bottom line, is revenues minus expenses. There is a profit when revenues exceed expenses.

If someone is found to be participating
in Insider Trading, the result could be
A. a promotion
B. award-winning
C. jail time

Answers

Answer:

jail time will be a perfect answer for your question.

Jail time is a great answer

The _____ is the person who provides support or obtains funding.


stakeholder
project manager
customer
sponsor

Answers

Answer:

sponsor

Explanation:

Which of the following is not a marketing activity?

Designing web advertisements
Analyzing guest satisfaction measurements
Coordinate public relations and publicity
Coordinating market research

Answers

Answer:

Designing web advertisements

Explanation:

Designing webs are not for marketers, so there's nothing to design

1. What is purchasing power parity hypothesis? Is PPP realistic or not? Why?

Answers

One of the most extensively researched topics in international finance and general economics is the purchasing power parity (PPP) hypothesis, which assumes a connection between exchange rates and prices.

Countries with robust government economic control occasionally impose official exchange rates that artificially strengthen their own currency. The currency's black market exchange rate is, in contrast, unnaturally low. A PPP exchange rate is perhaps the most accurate foundation for economic comparison in such circumstances.

Benefits of PPP: The key one is that PPP exchange rates have historically been quite stable. Market rates, on the other hand, are more erratic, and utilizing them could lead to rather significant fluctuations in overall growth measurements—even when growth rates in particular countries are consistent.

Learn more about purchasing power

https://brainly.com/question/29888131

find one investing concept that you BOTH put into category 3 and do some quick online research to find a

resource that explains the topic better. Both of you should be looking for resources, and then, based on what

you find, write a brief explanation of your new understanding here:

Answers

Fixed interest is a investing concept that usually is very reliable and is not to difficult to orchestrate. Fixed interest is considered by many to be an intellectual persons investing concept.

I hope this answers your question have an excellent day!

Who collects income tax that is payable to the federal government?
Income tax that is payable to the federal government is collected by the
.

Answers

Answer:

Explanation:

Internal Revenue Service (IRS). The IRS is a federal agency within the U.S. Department of Treasury that is responsible for enforcing the federal tax laws and collecting taxes from individuals and businesses. The IRS also provides taxpayers with guidance on their tax obligations and assists them with filing their taxes.

It is responsible for ensuring compliance with the tax laws and enforcing penalties if individuals or organizations fail to pay the taxes they owe. Additionally, the IRS provides taxpayer services to assist individuals and businesses with understanding and meeting their tax obligations.

You are International Business Manager at a UK based company. Your company has identified USA and Europe as potential markets and wish to expand asap and plans a full-scale expansion. You are requested to analyse both projects and advise.

In considering such large project, you must work out the risk of each project, cost of capital and NPV. Allocate discount rate for each project according to current international business climate and justify why you allocated the discount rate for each region. Discuss how you aim to manage international risks.

Projected cash flows in respective currencies:

Year Net Cash Flow – USA USD Net Cash Flow - Europe EUR
0 -20 million -20 million
1 2 million 2 million
2 4 million 3 million
3 5 million 4 million
4 6 million 8 million
5 8 million 8 million

Instructions:
a. Briefly discuss viability of both projects in today’s global business context. Based on your discussion allocate and justify discount rate for both projects. (30 Marks)
b. How much investment (GBP) is needed for each project and what is the NPV of each project? Use spot and forward exchange rates to discuss. (30 Marks)
c. Considering current world economic climate, the future exchange rates are uncertain. How would you analyse/anticipate the change in exchange rates? Write a brief proposal to mitigate impact of possible exchange rate fluctuations (30 Marks)
d. Discuss your calculations and advise which project should be selected. (10 Marks)

Answers

Answer:

a. In order to determine the viability of these projects and allocate the appropriate discount rate, it is necessary to consider the current global business context. This includes factors such as economic conditions, political stability, competition, and other risks specific to each region.

Based on this analysis, the USA project may be considered more viable due to its larger market size and generally more stable economic and political environment compared to Europe. However, the European project may offer potential for growth in certain sectors, such as technology or green energy.

In terms of discount rates, it would be appropriate to allocate a higher rate for the European project due to the greater inherent risks associated with expanding into this region. The discount rate for the USA project could be lower, reflecting the lower perceived risk.

b. In order to calculate the amount of investment needed for each project and the corresponding NPV, we will need to convert the projected cash flows into GBP using the current spot exchange rate. For example, if the spot exchange rate for USD is 1.30 GBP and the spot exchange rate for EUR is 1.20 GBP, the investment needed for the USA project would be £20 million and the investment needed for the European project would be £20 million.

Using a discount rate of, say, 10% for the USA project and 15% for the European project, we can then calculate the NPV of each project as follows:

USA project:

NPV = -£20 million + (£2 million / 1.1) + (£4 million / (1.1^2)) + (£5 million / (1.1^3)) + (£6 million / (1.1^4)) + (£8 million / (1.1^5))

= £2.8 million

European project:

NPV = -£20 million + (£2 million / 1.15) + (£3 million / (1.15^2)) + (£4 million / (1.15^3)) + (£8 million / (1.15^4)) + (£8 million / (1.15^5))

= £2.2 million

c. In order to anticipate and mitigate the impact of exchange rate fluctuations on these projects, it may be advisable to use forward exchange contracts to lock in a specific exchange rate for a future date. This can help to reduce uncertainty and protect against potential losses due to unfavorable movement in the exchange rate.

Additionally, it may be helpful to diversify the currency exposure of the projects by investing in a range of currencies or using currency hedging strategies. This can help to reduce the overall risk associated with exchange rate fluctuations.

d. Based on the calculations above, it appears that the USA project may offer a higher NPV and therefore may be the more attractive option. However, it is important to consider all factors when making this decision, including the specific risks and opportunities associated with each region, as well as the company's overall goals and resources.

A flexible expense and a periodic expense are basically the same thing.

Answers

Answer:

A flexible expense is a type of business expense that can vary in amount from one period to the next.on the other hand Periodic expenses, on the other hand, are expenses that occur on a regular basis

Explanation:

A flexible expense is a type of business expense that can vary in amount from one period to the next. These expenses are typically not fixed and can be adjusted based on the needs of the business.

Periodic expenses, on the other hand, are expenses that occur on a regular basis, but not necessarily at the same intervals. These expenses may be fixed or variable in amount, and they may be related to the operation of the business or to the personal needs of the owner.

While both flexible expenses and periodic expenses can vary in amount, they are not necessarily the same thing. Flexible expenses are typically discretionary expenses that can be adjusted based on the needs of the business, while periodic expenses are more predictable and may be necessary for the operation of the business.

To learn more about flexible and periodic expense

https://brainly.com/question/6838514

https://brainly.com/question/20114220

A project has the following cash flows: Year Cash Flows 0 -1,200 1 600 2 600 3 600 4 300 5 200 6 200 What is the Internal Rate of Return (IRR) of this project?

Answers

The internal rate of return of the project given its cash flows is 34.26%.

What is the internal rate of return?

Internal rate of return is the discount rate that equates the after-tax cash flows from an investment to the amount invested

IRR can be calculated with a financial calculator

The internal rate of return can be determined using a financial calculator.

Cash flow in year 0 = -1200

Cash flow in year 1 - 3 = 600

Cash flow in year 4 = 300

Cash flow in year 5 - 6= 200

Internal rate of return = 34.26%

To learn more about IRR, please check: https://brainly.com/question/26484024

#SPJ1

A self assessment tool that identifies your strengths, skills, and interests is called a(n) ___.
A. interest inventory
B. entrance exam
C. psychological evaluation
D. standardized test

Answers

A self assessment tool that identifies your strengths, skills, and interests is called an interest inventory. The Option A is correct.

What does an interest inventory mean?

An interest inventory, also known as an interest test, is a testing instrument designed to measure and evaluate an individual's level of interest in, or preference for, a variety of activities. Direct observation of behavior, ability tests, and self-reporting inventories of interest in educational, social, recreational, and vocational activities are examples of testing methods.

The activities typically represented in interest inventories are related to various occupational areas, and these instruments and their outcomes are frequently used in vocational guidance.

Read more about interest inventory

brainly.com/question/27977249

#SPJ1

2. What was the reasons/motives of each contributors/authors behind developing such management theory​

Answers

Explanation:

[tex]Cosθ[/tex]

Cos(θ)

Robert believes that entrepreneurship will help you in other aspects of your life. What do you think?

Answers

Entrepreneurship can certainly help you in other aspects of your life. Starting and running a business can be a challenging and rewarding experience that can help you develop a range of skills and qualities that are valuable in other areas of your life. For example, entrepreneurship can help you to:

Develop problem-solving skills: As an entrepreneur, you will need to be able to identify and solve problems in order to succeed in your business. This can help you to develop critical thinking and problem-solving skills that can be useful in other areas of your life.
Enhance your communication skills: As an entrepreneur, you will need to be able to effectively communicate your ideas and vision to others, including employees, customers, and partners. This can help you to improve your communication skills, which are valuable in many different settings.
Build your leadership skills: As an entrepreneur, you will often be responsible for leading and managing a team of people. This can help you to develop leadership skills such as motivation, delegation, and team building, which can be useful in other areas of your life.
Enhance your creativity and innovation: Entrepreneurs are often required to come up with new ideas and innovative solutions to problems. This can help you to develop your creativity and innovative thinking skills, which can be valuable in many different contexts.
Improve your time management skills: As an entrepreneur, you will need to be able to effectively manage your time and prioritize your tasks in order to achieve your goals. This can help you to improve your time management skills, which are valuable in many different areas of your life.
Overall, entrepreneurship can be a valuable and enriching experience that can help you to develop a range of skills and qualities that are valuable in other aspects of your life.

take a look at the figure. The basic shape of the body of the lamp shown is a A. cylinder. B. pyramid. C. cone. D. sphere.

Answers

The basic shape of the body of the lamp shown is the cone. A cone is formed by a set of line segments, half-lines, or lines connecting a common point.

What is a cone?

The cone in the shape of the figure is a three-dimensional geometric shape. That smoothly forms a flat base to a point called the apex or vertex. A cone is formed by a set of line segments, half-lines, or lines connecting a common point, the apex. the points on a base that is in a plane that does not contain the apex.

A cone refers that a shape consisting of a circular base and the once continuous curved base tapering to a point (the apex) above the center of the circular base.

Therefore, The lamp shown is the cone. A cone is formed by a set of line segments

Learn more about the conflict here:

https://brainly.com/question/17085630

#SPJ1


John's company acquired 5,000 new customers last year. They spent $20,000 in marketing costs and $15,000 in sales costs. What is John's customer acqu
cost (CAC)?

Answers

John's customer acquisition cost (CAC) is $7.

What is customer acquisition cost?Customer Acquisition Cost (CAC) measures the amount a business spends to acquire a new customer. Customer acquisition cost (CAC) — a key business metric — is the total cost of sales and marketing activities, real estate, or equipment required to persuade customers to purchase your product or service.Customer acquisition cost is the cost of acquiring a customer to purchase a product or service. As an important economic unit, customer acquisition costs are often related to customer lifetime value. Customer acquisition cost allows any company to estimate how much money it spends on acquiring each customer. Essentially, Customer acquisition cost is calculated by simply dividing all the costs spent to acquire more customers (marketing costs) by the number of customers acquired during the period in which the costs were spent. We can calculate For example, if a company spends his $100 on marketing in one year and  in the same year he gets 100 customers, his Customer acquisition cost will be $1.00.

To learn more about customer acquisition cost from the given link :

https://brainly.com/question/15325223

#SPJ1

Answer: $7

Explanation:

I just answered the question

Give reasons that can explain why a stock price might not react at all on the day that new information related to the stock's issuer is released? Which of these reasons hold if the market is semi strong form efficient? Explain your argument.

Answers

The best argument to give is that stock prices change rapidly at any given time. Stocks are very hard to predict. The market can only be semi strong if more people are investing in a diversity of stocks which will grow the market.

Hope this helps have an excellent day!
Other Questions
[tex]if \: x = 1 - \sin( \alpha ) \: and \: y = 1 + \cos( \alpha ) \\ [/tex]Express y in terms of x and alpha only The owner of a mall retaurant bought 75 kilogram of rice. Each week, the retaurant ue 4. 5 kilogram of rice. Function r give the remaining amount of rice, in kilogram, a a function of the number of week ince the retaurant owner bought the rice. 1. Complete the table. Clear All STEM Osmium is the densest chemical element. A cubic centimeter of osmium has a mass of about 23 grams. If a chemist has 2,530 grams of osmium, about how many cubic centimeters does the chemist have? WHAT WAS THAT SCENE IN PRINCE OF PERSIA 1992 GAME WHEN HE GOES THROUGH THE MIRROR AND ANOTHER HIM COMES OUT. Difference between Red Fort and Taj Mahal Option A: You are given $100 on the first day and then receive $10 each day for the month of February.Option B: You are given one cent on the first day and that amount will double each consecutive day for the month of February.Write a function rule to represent the total amount earned with Option A.Write a function rule to represent the amount of money you will have earned with Option B. $7,400 at 10.5% for years A map has a scale of 1 inch=35 miles. What is the actual distance if the distance on the map is 3.5 inches need help with this problem How were young Soviet children recruited and trained to be ballet dancers? draw the graph of y=_3x_4 Is 2x 3 a linear equation in two variables? The price of a stock decreased by 20%. By what percent must the price increase to return to its original value What are the 7 are elements? How to find the slope of a line that goes from (10,40) to (0,0) You rub a piece of wool upon your skin and your skin becomes negatively charged because it gained _____. Can you help me with this What do the clothes and kitchen make the women realize about Mrs Wright? Communication, leadership, and time-management are all examples of: Hard skills Soft skills Employment trends All of the above None of the above. find the equation of a line perpendicular to 2y=6-2x that passes through point (6,-7)