One element in preparing a financial plan for a client is to determine the appropriate type and amount of life insurance. If a client is conservative, 30 years old, and married with 2 young children, whose income is unpredictable, the IA may recommend what type of life insurance policy?

Answers

Answer 1

Answer:

Answer:

Permanent Life Insurance Policy

Explanation:

Permanent Life Insurance Policy is a flexible insurance policy that allows policy holders to borrow from their insurance policy (policy loan). Furthermore, withdrawal up to the total premium amount paid into the policy is allowed.

Related Questions

Donnie Hilfiger has two classes of stock authorized: $1 par preferred and $0.01 par value common. As of the beginning of 2018, 300 shares of preferred stock and 3,100 shares of common stock have been issued. The following transactions affect stockholders' equity during 2018: March 1 Issue 1,100 shares of common stock for $33 per share. May 15 Purchase 400 shares of treasury stock for $26 per share. July 10 Reissue 200 shares of treasury stock purchased on May 15 for $31 per share. October 15 Issue 200 shares of preferred stock for $36 per share. December 1 Declare a cash dividend on both common and preferred stock of $0.80 per share to all stockholders of record on December 15. (Hint: Dividends are not paid on treasury stock.) December 31 Pay the cash dividends declared on December 1. Donnie Hilfiger has the following beginning balances in its stockholders' equity accounts on January 1, 2018: Preferred Stock, $300; Common Stock, $31; Additional Paid-in Capital, $67,000; and Retained Earnings, $26,000. Net income for the year ended December 31, 2018, is $9,900. Taking into consideration the beginning balances on January 1, 2018 and all the transactions during 2018, respond to the following for Donnie Hilfiger: Required: 1. Prepare the stockholders' equity section of the balance sheet as of December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.) 2. Prepare the statement of stockholders' equity for the year ended December 31, 2018. (Amounts to be deducted should be indicated by a minus sign.)
Equivalent Units of Conversion Costs The Filling Department of Eve Cosmetics Company had 4,000 ounces in beginning work in process inventory (60% complete). During the period, 46,000 ounces were completed. The ending work in process inventory was 8,000 ounces (25% complete).What are the total equivalent units for conversion costs? If required, round to the nearest unit.
Suppose you invest equal amounts in a risky asset with an expected return of 16% and a standard deviation of returns of 18% and a risk-free asset with an interest rate of 4%. Calculate the standard deviation of the returns on the resulting portfolio.
Which of the following changes would increase structural unemployment? Select one: a. An increase in the speed that firms and potential workers exchange information b. A recession caused by a drop in total spending c. A decrease in the minimum wage d. Increased globalization that moves the economy from a manufacturing-based economy to a more service-based economy
Arden Company reported the following costs and expenses for the most recent month: Direct materials $ 79,000 Direct labor $ 41,000 Manufacturing overhead $ 19,000 Selling expenses $ 22,000 Administrative expenses $ 34,000 Required: 1. What is the total amount of product costs

Sheridan Company's trial balance reflected the following account balances at December 31, 2017: Accounts receivable (net) $37,000
Trading securities 11,500
Accumulated depreciation on equipment and furniture 29,000
Cash 33,000
Inventory 58,500
Equipment 45,000
Patent 9,000
Prepaid expenses 3,700
Land held for future business site 36,500

In Sheridan’s December 31, 2017 balance sheet, the current assets total is:

a. $212500.
b. $234300.
c. $146500.
d. $218300.

Answers

Answer:

$143,700

Explanation:

Current assets in Sheridan Company's trial balance are;

Accounts receivable (net) = $37,000

Trading securities = $11,500

Cash = $33,000

Inventory = $58,500

Prepaid expenses = $3,700

Total current assets = $37,000 + $11,500 + $33,000 + $58,500 + $3,700

= $143,700

The right answer is not given as an option.

According to the life-cycle and permanent-income hypotheses, if future income rises permanently, current consumption:

Answers

Answer:

b. rises.

Explanation:

In the case when the future income increased on permanently basis so as per the life cycle and the hypothesis of permanent income the current income rises because in this case the people rises their level of consumption patterns over their lifecycle

Therefore in the given situation, the rises is the answer and the same is to be considered

A. The August 31 balance shown on the bank statement is $9,799. b. There is a deposit in transit of $1,247 at August 31.
c. Outstanding checks at August 31 totaled $1,870.
d. Interest credited to the account during August but not recorded on the company's books amounted to $115.
e. A bank charge of $37 for checks was made to the account during August. Although the company was expecting a charge, the amount was not known until the bank statement arrived.
f. In the process of reviewing the canceled checks, it was determined that a check issued to a supplier in payment of accounts payable of $625 had been recorded as a disbursement of $367.
g. The August 31 balance in the general ledger Cash account, before reconciliation, is $9,356.

Required:
Prepare the adjusting journal entry that should be prepared to reflect the reconciling items.

Answers

Answer:

Part a.

No entry

Part b.

Debit : Deposits in Transit $1,247

Credit : Bank Reconciliation Statement $1,247

Increase the Bank Statement Balance

Part c.

Debit : Bank Reconciliation Statement $1,247

Credit : Out Standing Checks $1,870

Decrease theBank Statement Balance

Part d.

Debit : Cash $115

Credit : Interest received $115

Interest credited in Bank Statement not recorded

Part e.

Debit : Bank Charges $37

Credit : Cash $37

Recording of Bank Charges in the Books

Part f.

Debit : Accounts Payable $258

Credit : Cash $258

Payment to Supplier understated by $258

Part d.

No entry

Explanation:

Corrections and Adjustments may be either to correct the Cash Book or the Bank Statement Balance as above.

Boat Guard, which used a standard cost accounting system, manufactured 210,000 boat fenders during the year, using 1,780,000 feet of extruded vinyl purchased at $1.30 per foot. Production required 4,900 direct labor hours that cost $13.00 per hour. The materials standard was 8 feet of vinyl per fender at a standard cost of $1.40 per foot. The labor standard was 0.024 direct labor hour per fender at a standard cost of $12.00 per hour.1. Compute the price and quantity variances for direct materials. Compute the rate and efficiency variances for direct labor.

2. Does the pattern of variances suggest that the company’s managers have been making trade-offs? Explain.

Answers

Answer and Explanation:

According to the scenario, computation of the given data are as follow:-

1. Direct Material Price is

= Actual Quantity × (Standard Rate - Actual Rate)

= 1,780,000 × ($1.40 - $1.30)

= 1,780,000 × 0.10

= $178,000 Favorable

Direct Material Quantity Variance is

= Standard Rate × (Standard Quantity - Actual Quantity)

= $1.40 × [(210,000 × 8) - 1,780,000]

= $1.40 × (1,680,000 - 1,780,000)

= $1.40 × -100,000

= -$140,000 Unfavorable

Direct Labor Rate Variance is

= Actual Hour × (Standard Rate - Actual Rate)

= 4,900 hours × ($12 - $13)

= -4,900 hours × $1

= -$4,900 Unfavorable

Direct Labor Efficiency Variance is

= Standard Rate × (Standard Hours - Actual Hours)

= $12 × [(210,000 × 0.024) - 4,900]

= $12 × [5,040 - 4,900]

= $12 × 140 hour

= $1,680 Favorable

2. As we can see that the material price variance and labor efficiency variance comes in favorable while on the other side, the material quantity variance and labor rate variance comes in unfavorable.

And we assume that the managers are purchasing the materials efficiently at lesser rates and the usage is not efficient.

Consequently , labor is efficient if the company paid at higher rate.

Therefore the managers are making trade offs.

Moreover, they are compromising of labor rate so that there would be rise in efficiency.

And at the same time if cheaper material is buyed so the quality is compromised and the changes of wastage is high that reflects the material quantity variance unfavorable

The Card Shoppe needs to maintain 18 percent of its sales in net working capital. Currently, the store is considering a four-year project that will increase sales from its current level of $279,000 to $308,000 the first year and to $314,000 a year for the following three years of the project. What amount should be included in the project analysis for net working capital in Year 4 of the project?

Answers

Answer:

$56,520

Explanation:

As per given data

Year Sales Working Capital 18%

0 $279,000 ($50,220)

1 $308,000 ($5,220)

2 $314,000 ($1,080)

3 $314,000 $0

4 $314,000 $56,520

As the sales value of year 2, 3 and 4 are same, as capital is adjusted in year 2 and company has equal working capital required in year 3, years 4 is the last year of the project so, working capital will be recovered from the project

Net Working capital will be reimbursed at the end of the project. The accumulated value of investment in working capital will be recorded as cash inflow in the analysis.

Rida, Inc., a manufacturer in a seasonal industry, is preparing its direct materials budget for the second quarter. It plans production of 240,000 units in the second quarter and 52,500 units in the third quarter. Raw material inventory is 43,200 pounds at the beginning of the second quarter. Other information follows:Direct materials Each unit requires 0.60 pounds of a key raw material, priced at $175 per pound. The company plans to end each quarter with an ending inventory of materials equal to 30% of next quarter’s budgeted materials requirements.
Prepare a direct materials budget for the second quarter.

Answers

Answer and Explanation:

The Preparation of direct materials budget for the second quarter is prepared below:-

Rida, Inc.,

Direct materials budget

For the second quarter

Particulars Amount

Production Unit 240,000

Raw material per unit 0.60

Raw material needed for production 144,000

(240,000 × 0.60)

Add: Desired ending inventory 9,450

(52,500 × 0.6 × 30%)

Total amount 153,450

Less: Beginning inventory ($43,200)

Direct material purchase $110,250

Cost per pound $175

Direct material purchase cost $19,293,750

Therefore to reach at direct material purchase cost we simply multiply the direct material purchase cost with cost per pound.

Other Questions

On July 1 of the current year, Marcia purchases a new home and borrows $320,000. Marcia is required to pay two points on the loan. The loan is secured by the residence and the charging of points is an established business practice in the area. The term of the loan is 20 years, beginning on July 1 of the current year. How much, if any, of the points may Marcia deduct in the current year?

What is the future value of an annuity due that pays $550 per year for 18 years? Use an annual interest rate of 8.00%.

On 1 July 2019, Quick Buck Ltd took control of the assets and liabilities of Eldorado Ltd. Quick Buck Ltd issued 80,000 shares having a fair value of $2.40 per share in exchange for the net assets of Eldorado Ltd. The costs of issuing the shares by Quick Buck Ltd cost $1,600. At this date the statement of financial position of Eldorado Ltd was as follows: Carrying amount Fair value Machinery $40,000 $67,000 Fixtures & fittings 60,000 68,000 Vehicles 35,000 35,000 Current assets 10,000 12,000 Current liabilities (16,000) (18,000) Total net assets $129,000 Share capital (80,000 shares at $1.00 per share) $80,000 General reserve 20,000 Retained earnings 29,000 Total equity $129,000 Required: Prepare the journal entries in the records of Quick Buck Ltd at 1 July 2019 for the acquisition. (10 marks)

Is a taxpayer required to report the reimbursement of a medical expense by insurance as income if the reimbursement is received in the year following the year of the expenditure?