Contemporary Mathematics for Business & Consumers
8th Edition
ISBN: 9781305585447
Author: Robert Brechner, Geroge Bergeman
Publisher: Cengage Learning
expand_more
expand_more
format_list_bulleted
Concept explainers
Videos
Textbook Question
thumb_up100%
Chapter 19.II, Problem 24RE
BUSINESS DECISION: BUSINESS INTERRUPTION INSURANCE
As the owner of a successful business, you have just purchased an additional type of properly insurance coverage known as business interruption insurance. This insurance protects the profits that a company would have earned had there been no problem. Business interruption insurance covers damages caused by all types of perils, such as fires, tornadoes, hurricanes, lightning, or any other disaster except floods and earthquakes.
This insurance pays for “economic" losses incurred when business operations suddenly cease. These include loss of income due to the interruption and additional expenses (e.g., leases; relocation to temporary facilities; overtime to keep up with production demands; recompiling of business, financial, and legal records; and even the salaries of key employees).
Your coverage provides insurance reimbursement for
a. If you have purchased coverage amounting to $20,000 per month, what is the amount of your annual premium?
b. If a tornado put your company out of business for
Expert Solution & Answer
Want to see the full answer?
Check out a sample textbook solution
Students have asked these similar questions
Franchise and Business Opportunities Annual Report contains information about franchise opportunities in the United
States and Canada. A franchise fee is one of the expenses associated with owning a franchise. There are other expenses,
such as startup, advertising, royalties, and so on. A large category of franchises is the fast-food businesss, which includes
franchises such as baked goods, donuts, and hamburgers, chicken, and hotdogs. Franchise fees (in thousands of dollars)
for the fast-food category are as follows:
21 25 25 18 44 20 25 15 19 24 1o
28 30 25 25 25 25 10 25 25 20 20.
20 15 10 20 25 25 13 30 15 28 15.
15 35 24 40 15 20 35 5 50 30 15
25 40 15 25 1575 33 23 30 10 15
8.25 10 8 20 25 20 30
FOR UNGROUPED DATA (USE 2 DECIMAL PLACES)
MEAN =
MEDIAN =
MODE =
KURTOSIS =
SKEWNESS =
CV =
FOR GROUPED DATA (USE 2 DECIMAL PLACES)
MEAN =
CS Scanned with CamScanner
Cash Flows from Operating Activities—Indirect Method
The net income reported on the income statement for the current year was $264,500. Depreciation recorded on equipment and a building amounted to $79,100 for the year. Balances of the current asset and current liability accounts at the beginning and end of the year are as follows:
End of Year
Beginning of Year
Cash
$73,000
$76,650
Accounts receivable (net)
92,560
94,590
Inventories
182,500
162,960
Prepaid expenses
10,150
10,810
Accounts payable (merchandise creditors)
81,540
85,540
Salaries payable
11,750
10,650
Question Content Area
a. Prepare the "Cash Flows from Operating Activities" section of the statement of cash flows, using the indirect method. Use the minus sign to indicate cash outflows, cash payments, decreases in cash, or any negative adjustments.
blankblankStatement of Cash Flows (partial)
Cash flows from operating activities:
$- Select -
Adjustments to…
New legislation passed in 2017 by the U.S. Congress changed tax laws that affect how many people file their taxes in 2018 and beyond. These tax law changes will likely lead many people to seek tax advice from their accountants (The New York Times). Backen and Hayes LLC is an accounting firm in New York state. The accounting firm believes that it may have to hire additional accountants to assist with the increased demand in tax advice for the upcoming tax season. Backen and Hayes LLC has developed the following probability distribution for number of new clients seeking tax advice.
x
f(x)
20
0.05
25
0.20
30
0.25
35
0.15
40
0.15
45
0.10
50
0.10
b. What is the probability that Backen and Hayes LLC will obtain 40 or more new clients (to 2 decimals
c. What is the probability that Backen and Hayes LLC will obtain fewer than 35 new clients (to 2 decimals)?
d.Compute the expected value, variance, and standard deviation of (to 2 decimals).
Expected value…
Chapter 19 Solutions
Contemporary Mathematics for Business & Consumers
Ch. 19.I - Prob. 1TIECh. 19.I - Prob. 2TIECh. 19.I - Prob. 3TIECh. 19.I - Calculate the annual, semiannual, quarterly, and...Ch. 19.I - Calculate the annual. semiannual, quarterly, and...Ch. 19.I - Prob. 3RECh. 19.I - Calculate the annual. semiannual, quarterly, and...Ch. 19.I - Prob. 5RECh. 19.I - Calculate the annual. semiannual, quarterly, and...Ch. 19.I - Calculate the annual. semiannual, quarterly, and...
Ch. 19.I - Calculate the annual. semiannual, quarterly, and...Ch. 19.I - Prob. 9RECh. 19.I - Calculate the value of the nonforfeiture options...Ch. 19.I - Prob. 11RECh. 19.I - Prob. 12RECh. 19.I - Calculate the value of the nonforfeiture options...Ch. 19.I - Calculate the value of the nonforfeiture options...Ch. 19.I - Leroy Kirk is 35 years old and is interested in...Ch. 19.I - 16. Rene Boyer, age 27. wants to purchase a 5-year...Ch. 19.I - Carmen Gutierrez purchased a $75,000, 20-payment...Ch. 19.I - 18. Alex Baron is evaluating his life insurance...Ch. 19.I - Richard Ryan is evaluating his life insurance...Ch. 19.I - BUSINESS DECISION: THE CONSULTATION
20. Tina...Ch. 19.II - You are the insurance agent for Diamond...Ch. 19.II - Prob. 5TIECh. 19.II - Prob. 6TIECh. 19.II - Prob. 7TIECh. 19.II - Prob. 8TIECh. 19.II - Prob. 1RECh. 19.II - Prob. 2RECh. 19.II - Prob. 3RECh. 19.II - Calculate the building, contents, and total...Ch. 19.II - Prob. 5RECh. 19.II - Prob. 6RECh. 19.II - Prob. 7RECh. 19.II - Prob. 8RECh. 19.II - Prob. 9RECh. 19.II - Calculate the short-term premium and refund for...Ch. 19.II - Calculate the short-term premium and refund for...Ch. 19.II - Calculate the short-term premium and refund for...Ch. 19.II - Prob. 13RECh. 19.II - Prob. 14RECh. 19.II - Prob. 15RECh. 19.II - Calculate the amount to be paid by the insurance...Ch. 19.II - Prob. 17RECh. 19.II - Calculate the amount to be paid by the insurance...Ch. 19.II - Prob. 19RECh. 19.II - You are the insurance agent for Castle Mountain...Ch. 19.II - A property insurance policy has an annual premium...Ch. 19.II - 22. Insignia Enterprises has a property insurance...Ch. 19.II - Prob. 23RECh. 19.II - BUSINESS DECISION: BUSINESS INTERRUPTION INSURANCE...Ch. 19.III - Jeff Wasserman, owner of High Performance Racing...Ch. 19.III - Prob. 10TIECh. 19.III - Prob. 1RECh. 19.III - Prob. 2RECh. 19.III - Prob. 3RECh. 19.III - As an insurance agent, calculate the annual...Ch. 19.III - Prob. 5RECh. 19.III - Prob. 6RECh. 19.III - Prob. 7RECh. 19.III - As an insurance agent, calculate the annual...Ch. 19.III - 9. Rick Clinton wants to purchase an automobile...Ch. 19.III -
10. Howard Marshall’s Corvette was hit by a palm...Ch. 19.III - Ben Hoffman has motor vehicle liability insurance...Ch. 19.III - BUSINESS DECISION: INSURING THE FLEET
12. The...Ch. 19 - A mechanism for reducing financial risk and...Ch. 19 - 2. The amount of protection provided by an...Ch. 19 - Prob. 3CRCh. 19 - Prob. 4CRCh. 19 - Prob. 5CRCh. 19 - Prob. 6CRCh. 19 - Prob. 7CRCh. 19 - Prob. 8CRCh. 19 - The premium charged when a policy is canceled by...Ch. 19 - The clause in a property insurance policy...Ch. 19 - Prob. 11CRCh. 19 - Prob. 12CRCh. 19 - Prob. 13CRCh. 19 - Prob. 14CRCh. 19 - Prob. 1ATCh. 19 - Calculate the annual, semiannual, quarterly, and...Ch. 19 - Calculate the annual, semiannual, quarterly, and...Ch. 19 - Calculate the annual, semiannual, quarterly, and...Ch. 19 - Prob. 5ATCh. 19 - Prob. 6ATCh. 19 - Prob. 7ATCh. 19 - 8. Mary Hall purchased a $45,000 20-year endowment...Ch. 19 - Prob. 9ATCh. 19 - Calculate the building, contents, and total...Ch. 19 - Prob. 11ATCh. 19 - Prob. 12ATCh. 19 - Prob. 13ATCh. 19 - Calculate the short-term premium and refund for...Ch. 19 - Prob. 15ATCh. 19 - Calculate the amount to be paid by the insurance...Ch. 19 - Prob. 17ATCh. 19 - Prob. 18ATCh. 19 - Prob. 19ATCh. 19 - Prob. 20ATCh. 19 - Prob. 21ATCh. 19 - Prob. 22ATCh. 19 - Prob. 23ATCh. 19 - Prob. 24AT
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, subject and related others by exploring similar questions and additional content below.Similar questions
- For a recent year, the federal income tax owed by a taxpayer (single-no dependents) was based on the individual's taxable income. (Source: Internal Revenue Service, www.irs.gov) If your taxable income is but not over– The tax is of the amount over- over– $0 $8925 $0 + 10% $O $8925 $36,250 $892.50 + 15% $8925 $36,250 $87,850 $4991.25 + 25% $36,250 Write a piecewise-defined function that expresses an individual's federal income tax f(x) (in S) as a function of the individual's taxable income x (in S).arrow_forwardLawsuit Defense StrategyJohn Campbell, an employee of Manhattan Construction Company, claims to have injured his back as a result of a fall while repairing the roof at one of the Eastview apartment buildings. In a lawsuit asking for damages of $1,500,000, filed against Doug Reynolds, the owner of Eastview Apartments, John claims that the roof had rotten sections and that hisfall could have been prevented if Mr. Reynolds had told Manhattan Construction about the problem. Mr. Reynolds notified his insurance company, Allied Insurance, of the lawsuit.Allied must defend Mr. Reynolds and decide what action to take regarding the lawsuit. Following some depositions and a series of discussions between the two sides, John Campbell offered to accept a settlement of $750,000. Thus, one option is for Allied to pay John $750,000 to settle the claim. Allied is also considering making John a counteroffer of$400,000 in the hope that he will accept a lesser amount to avoid the time and cost of going to…arrow_forwardI need some help with sections D, E, and F pleasearrow_forward
- Medical: Injuries The Grand Canyon and the Colorado River are beautiful, rugged, and sometimes dangerous. Thomas Myers is a physician at the park clinic in Grand Canyon Village. Dr. Myers has recorded (for a 5-year period) the number of visitor injuries at different landing points for commercial boat trips down the Colorado River in both the Upper and Lower Grand Canyon .................................................................. The statement above is apart of the problem, but what you would need to look at is the picture below which is important to answer both part e below. The Upper Canyon and the Lower Canyon is shown in the picture below, please rearrange each of the upper and lower canyons numbers to find the mean median and mode. Here is the questions below that needs to be answered correctly. Part (e): Determine the new mean, median and mode if each of the number of injuries from Upper Canyon will increase by 3. Part (e): Determine the new mean, median and mode if…arrow_forwardSuppose a company charges an annual premium of $110 for an insurance policy for minor injuries. Actuarial studies show that in case of an injury claim, the company will pay out an average of $900 for outpatient care and an average of $3000 for an overnight stay in the hospital. They also determine that, on average, each year there are five claims made that result in outpatient care for every 1000 policies and three claims made that result in an overnight stay out of every 1000 policies. What is the expected annual profit of an insurance policy for the company?arrow_forwardThe percentage of employees who cease their employment during a year is referred to as employee turnover, and it is a serious issue for businesses. The following table shows the cost, in millions of dollars, to a certain company for a given employee turnover percentage in a year.arrow_forward
- [Animal Care] Kellian, a licensed veterinarian, was recently elected to the U.S. Senate. Kellian is very concerned about the lack of care for homeless cats and dogs. She proposes legislation whereby citizens of all states are to be taxed sufficiently to provide for no-kill animal shelters, and that citizens in states with higher-than-average incomes are to be taxed at a higher rate than citizens of other states. She also proposes that federal funds for state highways be denied to any state that fails to provide assistance to low-income citizens in covering pet vaccinations. José, another new senator, tells Kellian that, apart from the mandated federal income tax, Congress lacks the authority to tax states because the U.S. Constitution expressly reserves that right to the states, Illyas, another senator, tells Kellian that Congress has no authority to link highway funds or any other funds with social welfare objectives. Devonne, a clerk in the Senate, tells Kellian that Congress is…arrow_forwardSwain Athletic Gear (SAG) operates six retail outlets in a large Midwest city. One is in the center of the city on Cornwall Street and the others are scattered around the perimeter of the city. Management at SAG is concerned about declining sales and profitability of the Cornwall store and believes that outlet has been a drag on profits in recent years. The most recent income statement for the Cornwall store follows. SWAIN ATHLETIC GEAR Cornwall Street Store Income Statement For the Year Ending February 28 Sales revenue $ 12,300,000 Costs Cost of goods sold $ 5,289,000 Advertising 1,421,000 Store administrative salaries 975,000 Sales commissions 1,056,000 Leases and utilities 2,100,000 Allocated corporate support 1,622,000 Total costs $ 12,463,000 Net loss before tax benefit $ (163,000) Tax benefit at 25% (40,750) Net loss $ (122,250) The CFO at SAG has asked for your advice on closing the Cornwall Street store. If the Cornwall Street store is…arrow_forward....................... You may need to use the appropriate appendix table or technology to answer this question. Health insurers are beginning to offer telemedicine services online that replace the common office visit. A company provides a video service that allows subscribers to connect with a physician online and receive prescribed treatments. The company claims that users of its online service saved a significant amount of money on a typical visit. The data shown below ($), for a sample of 20 online doctor visits, are consistent with the savings per visit reported by the company. 102 44 50 115 93 65 66 59 50 86 58 106 103 84 83 88 103 110 63 92 Assuming the population is roughly symmetric, construct a 95% confidence interval for the mean savings in dollars for a televisit to the doctor as opposed to an office visit. (Round your answers to the nearest cent.) $ to $arrow_forward
- Case: Kodak Transitions Well into the Digital Market George Eastman was born in 1854 in Upstate New York. A high school dropout because of the untimely death of his father and the ensuing financial needs of his family, Eastman began his business career as a 14-year-old office boy in an insurance company, eventually taking charge of policy filing and even policy writing. In a few years, after studying accounting on the side, he became a bank clerk. When Eastman was 24, he was making plans for a trip to the Caribbean when a coworker suggested that he record the trip. Eastman bought considerable photographic equipment and learned how to take pictures. He described the complete outfit of his photographic equipment as a “pack-horse load.” Eastman never made the trip to the Caribbean, but he did spend the rest of his life in pursuit of simplifying the complicated photographic process, reducing the size of the load, and making picture taking available to everyone. After experimenting for…arrow_forwardCity Rent ($) Mortgage ($) Atlanta 840 539 Chicago 1062 1002 Detroit 823 626 Jacksonville, Fla. 779 711 Las Vegas 796 655 Miami 1071 977 Minneapolis 953 776 Orlando, Fla. 851 695 Phoenix 762 651 St. Louis 723 654arrow_forwardLine 1 Line 2 Line 3 Line 4 Line 5 Line 6 If taxable income is over But not over -- $9,275 37,650 91,150 190,150 413,350 $0 9,275 37,650 91,150 190,150 413,350 ↳ The tax is $0+10% 927.50+15% 5,183.75+25% 18,558.75+28% 46.278.75+33% 119,934.75+35% Use the table above to calculate the federal income tax due for a taxable income of $151,000. Of the amount over- $0 9,275 37,650 91.150 190,150 413,350arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
Holt Mcdougal Larson Pre-algebra: Student Edition...AlgebraISBN:9780547587776Author:HOLT MCDOUGALPublisher:HOLT MCDOUGAL
Holt Mcdougal Larson Pre-algebra: Student Edition...
Algebra
ISBN:9780547587776
Author:HOLT MCDOUGAL
Publisher:HOLT MCDOUGAL
Mod-01 Lec-01 Discrete probability distributions (Part 1); Author: nptelhrd;https://www.youtube.com/watch?v=6x1pL9Yov1k;License: Standard YouTube License, CC-BY
Discrete Probability Distributions; Author: Learn Something;https://www.youtube.com/watch?v=m9U4UelWLFs;License: Standard YouTube License, CC-BY
Probability Distribution Functions (PMF, PDF, CDF); Author: zedstatistics;https://www.youtube.com/watch?v=YXLVjCKVP7U;License: Standard YouTube License, CC-BY
Discrete Distributions: Binomial, Poisson and Hypergeometric | Statistics for Data Science; Author: Dr. Bharatendra Rai;https://www.youtube.com/watch?v=lHhyy4JMigg;License: Standard Youtube License