Author Question: During the year, Tempo Inc has monthly cash expenses of 115,000 . On December 31, its cash balance ... (Read 141 times)

karateprodigy · **on:** Jul 5, 2018

During the year, Tempo Inc has monthly cash expenses of 115,000 . On December 31, its cash balance is1,437,500 . The ratio of cash to monthly cash expenses is
a. 8.0
b. 12.5
c. 87.5
d. 11.5

Question 2

On January 1, 2011, Zenith, Inc, signed a 200,000, 5, 20-year mortgage note to buy a new office building. The mortgage will be repaid in a series of twenty equal annual installment payments.

Over the 20-year period, as each installment payment is made, the portion of the payment that is used to reduce the principal will ________.
A) increase
B) decrease
C) stay the same
D) The answer cannot be determined from the information given.