Max has a net spendable income of $1,700 per month. He has a new job and is looking for a new car. Max is trying to develop a budget for himself. Look at the following budget he has created. Which category should he adjust? Percent Amount Budgeted Amount Spent Amount Over/Under Budget
Net Spendable Income 100% 1700
1. Housing (30% - 36%) 600
a. Mortgage (rent)
b. Taxes
c. Insurance
d. Electricity
e. Gas
f. Water
g. Telephone

h. Sanitation
i. Other
2. Food (12% - 17%) 320
3. Transportation (15% - 20%) 300
a. Car Payments
b. Gas/Oil

c. Insurance
d. License/Registration
e. Taxes
f. Maintenance/Repair
4. Insurance (3% - 7%)
a. Life
b. Medical
5. Debts (5% - 6%) 150
6. Entertainment (5% - 8%)
7. Clothing (5% - 6%)
8. Savings 5%
9. Medical Expenses (4% - 8%)
a. Doctor
b. Dental
c. Prescriptions
10. Miscellaneous (5% - 10%)
a. Toiletries
b. Beauty/Barber
c. Laundry/Clothing
d. Subscriptions
TOTALS:
A. transportation
B. debts
C. housing
D. food

Peninsula products has just applied for a loan at your bank. when reviewing peninsula's books for the year that just ended, you notice that the firm uses the fair value option for its bonds payable. you also see that the firm recorded a $55,000 debit in its bonds payable account and a $55,000 credit in its unrealized holding gain or loss"income account. over that same period, interest rates decreased by about 0.5 percent. how should this information affect the bank's decision as to whether to grant peninsula a loan? a : the bank should strongly consider giving a loan to peninsula because the changes in firm's bonds payable and unrealized holding gain or loss"income accounts suggest that peninsula has seen an increase in its credit rating over the past year. b : the bank should put little emphasis on the changes in peninsula's bonds payable and unrealized holding gain or loss"income accounts because these changes are likely the result of the rise in interest rates. c : the bank should hesitate before giving a loan to peninsula because the changes in firm's bonds payable and unrealized holding gain or loss"income accounts suggest that peninsula has seen a decline in its credit rating over the past year. d : the bank should put little emphasis on the changes in peninsula's bonds payable and unrealized holding gain or loss"income accounts because these changes are likely unrelated to either interest rates or the firm's credit rating.

Cash flows during the first year of operations for the harman-kardon consulting company were as follows: cash collected from customers, $385,000; cash paid for rent, $49,000; cash paid to employees for services rendered during the year, $129,000; cash paid for utilities, $59,000. in addition, you determine that customers owed the company $69,000 at the end of the year and no bad debts were anticipated. also, the company owed the gas and electric company $2,900 at year-end, and the rent payment was for a two-year period.

Alpha industries is considering a project with an initial cost of $8 million. the project will produce cash inflows of $1.49 million per year for 8 years. the project has the same risk as the firm. the firm has a pretax cost of debt of 5.61 percent and a cost of equity of 11.27 percent. the debt–equity ratio is .60 and the tax rate is 35 percent. what is the net present value of the project?