List the six components of a financial plan

What will be an ideal response?


Answer: (a) Budgeting and tax planning
(b) Managing liquidity
(c) Financing your large purchases
(d) Protecting your assets and income
(e) Investing your money
(f) Planning your retirement and estate

Business

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Perfect Corporation acquired 70 percent of Storm Company's shares on December 31, 20X8, for $140,000. At that date, the fair value of the noncontrolling interest was $60,000. On January 1, 20X0, Perfect acquired an additional 10 percent of Storm's common stock for $32,500. Summarized balance sheets for Storm on the dates indicated are as follows: Dec 31 20X820X920X0Cash$25,000  35,000  50,000 Accounts Receivable 30,000  45,000  80,000 Inventory 45,000  60,000  70,000 Buildings and Equipment (net) 200,000  180,000  160,000 Total Assets$300,000 $320,000 $360,000 Accounts Payable $40,000  35,000  40,000 Notes Payable 60,000  60,000  60,000 Common Stock 100,000  100,000  100,000 Retained Earnings 100,000  125,000  160,000 Total Liabilities

and Equities$300,000 $320,000 $360,000 Storm paid dividends of $10,000 in each of the three years. Perfect uses the fully adjusted equity method in accounting for its investment in Storm and amortizes all differentials over 5 years against the related investment income. All differentials are assigned to patents in the consolidated financial statements.Based on the preceding information, Storm Company's net income for 20X9 and 20X0 are: A. $35,000 and $45,000 respectively. B. $25,000 and $35,000 respectively. C. $25,000 and $45,000 respectively. D. $10,000 and $20,000 respectively.

Business

In the Schedule of Cost of Goods Manufactured, Total direct materials = Raw materials used in production - Ending raw materials inventory.

Answer the following statement true (T) or false (F)

Business

Generalization is abstracting common elements shared by a set of classes into a(n) ________

A) subclass B) superclass C) aggregation D) composition

Business

Systematic risk is also referred to as ________.

A) business specific risk B) internal risk C) nondiversifiable risk D) maturity risk

Business