Answer:
A bank currently has $100,000 in checkable deposits and $15,000 in actual reserves. If the reserve ratio is 20 percent, the bank has __$80,000__ in money-creating potential. If the reserve ratio is 14 percent, the bank has ___$86,000__ in money-creating potential.
Explanation:
a) Data and Calculations:
Checkable deposits = $100,000
Actual reserves = $15,000
Required reserves = $20,000 ($100,000 * 20%)
Excess reserves = -$5,000 ($15,000 - $20,000)
Money-creating potential = $80,000 ($100,000 - $20,000)
Total amount of money the bank can create = $500,000 ($100,000/20%)
b) Checkable deposits = $100,000
Actual reserves = $15,000
Required reserves = $14,000 ($100,000 * 14%)
Excess reserves = $1,000 ($15,000 - $14,000)
Money-creating potential = $86,000 ($100,000 - $14,000)
Total amount of money the bank can create = $714,286 ($100,000/14%)
On January 1, 2024, an investor paid $261,000 for bonds with a face amount of $315,000. The contract rate of interest is 8% while the current market rate of interest is 10%. Using the effective interest method, how much interest income is recognized by the investor in 2025 (assume annual interest payments and amortization)
Answer:
$26,100
Explanation:
Calculation to determine how much interest income is recognized by the investor in 2025
Using this formula
Interest income = Amount paid* market rate of interest
Let plug in the formula
Interest income= $261,000*10%
Interest income= $26,100
Therefore the interest income that is recognized by the investor in 2025 will be $26,100
Name four commercial services which are useful to the manufacturer
Answer:
hu
Explanation:
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Pestro manufactures a herbicide that is used in the parks in Metroville. After the parks were sprayed with the herbicide, a group of children became ill and required hospitalization. Two dogs that were also in the park that day died. The parents of the children and the dog owners could:____.
a. not bring suit against the city.
b. only bring suit against the city.
c. not bring suit against Pestro because of a lack of privity.
d. bring suit against Pestro under Section 402A even though there is no privity.
Answer:
d. bring suit against Pestro under Section 402A even though there is no privity.
Explanation:
Section 402A enforces strict liability for physical harm that is caused a by the product sold to a buyer by a seller.
It states that if a seller sells a defective product that is unreasonably dangerous to an end user, the seller will be liable for any physical harm that results from its use.
Privity is when a contractual relationship exists between different parties in a transaction.
In the given scenario even without a privity the parents of the children and the dogs can bring suit against Pestro under Section 402A even though there is no privity.
They don't have to have a direct contractual relationship with Pestro.
Applications that integrate business activities across departmental boundaries are often referred to as _____________ planning systems.
Answer:
Enterprise resource.
Explanation:
Enterprise Resource Planning (ERP) is a business strategy process where organizations manage and integrate the main parts of their day-to-day business activities by using software applications.
The ERP software system is used to integrate planning, accounting, finance, marketing and human resources.
For instance, when an organization is replacing a payroll program that it developed in house, with the relevant subsystem of a commercial Enterprise Resource Planning (ERP) system, It should be noted that a faulty migration of historical data from the old system to the new system represent the highest potential risk because you won't be able to measure and analyze performance.
Hence, software applications or programs that integrate all business activities across departmental boundaries such as marketing, procurement, customer relationship, sales, etc., are often referred to as enterprise resource planning systems.
On February 3, Smart Company sold merchandise in the amount of $2,700 to Truman Company, with credit terms of 1/10, n/30. The cost of the items sold is $1,865. Smart uses the perpetual inventory system and the gross method. Truman pays the invoice on February 8, and takes the appropriate discount. The journal entry that Smart makes on February 8 is:
Answer:
Journal entry on February 8 :
Debit : Cash $2,673
Debit : Discount received $27
Credit : Account Receivable $2,700
Explanation:
The journal entry that Smart makes on February should show the Cash payment net of cash discount, a decrease in Total Account Receivable balance and recognition of an expense discount allowed up to 1 %.
A developer of a new townhome community estimates that there will be 1,200 home (all types) sales in University City over the next year. An analysis of demographic information has revealed that the core market share for the townhome project within the community is 10%. Assuming a capture rate of 20%, what is the developer's first-year projection of townhome sales in the new community
PAnswer:
24 units
Explanation:
Calculation to determine what is the developer's first-year projection of townhome sales in the new community
First-year projection=10%*1200*20%
First-year projection=24 units
Therefore the developer's first-year projection of townhome sales in the new community is 24 units
A perfectly elastic supply curve is: Group of answer choices upward sloping to the right. vertical. horizontal. downward sloping to the left.
Answer:
vertical
Explanation:
Price elasticity of demand measures the responsiveness of quantity demanded to changes in price of the good.
Price elasticity of demand = percentage change in quantity demanded / percentage change in price
If the absolute value of price elasticity is greater than one, it means demand is elastic. Elastic demand means that quantity demanded is sensitive to price changes.
Demand is inelastic if a small change in price has little or no effect on quantity demanded. The absolute value of elasticity would be less than one
Demand is unit elastic if a small change in price has an equal and proportionate effect on quantity demanded.
whistle works manufacturers safety whistle keychains. They have the following information available to prepare their master budget whistle works sells eafch whistle for $12. It takes .25 direct labor hours to produce each whistle at a cost of $15 per hour. How much will direct labor cost be in December
Answer:
See below
Explanation:
The above information is incomplete. However, similar question will be used.
Following are the transactions of a new company called Pose-for-Pics. Aug. 1 Madison Harris, the owner, invested $12,750 cash and $54,825 of photography equipment in the company in exchange for common stock. 2 The company paid $3,500 cash for an insurance policy covering the next 24 months. 5 The company purchased office supplies for $2,423 cash. 20 The company received $2,050 cash in photography fees earned. 31 The company paid $868 cash for August utilities. Prepare general journal entries for the above transactions.
Answer:
Aug 1
Dr Cash $12,750
Dr Photography equipment $54,825
Cr Common stock $67,575
Aug 2
Dr Prepaid insurance $3,500
Cr Cash $3,500
Aug 5
Dr Office supplies $2,423
Cr Cash $2,423
Aug 20
Dr Cash $2,050
Cr Photography fees earned $2,050
Aug 31
Dr Utilities Expense $868
Cr Cash $868
Explanation:
Preparation of general journal entries for the above transactions
Aug 1
Dr Cash $12,750
Dr Photography equipment $54,825
Cr Common stock $67,575
($12,750+$54,825)
Aug 2
Dr Prepaid insurance $3,500
Cr Cash $3,500
Aug 5
Dr Office supplies $2,423
Cr Cash $2,423
Aug 20
Dr Cash $2,050
Cr Photography fees earned $2,050
Aug 31
Dr Utilities Expense $868
Cr Cash $868
In 1 to 2 paragraphs, analyze how a person's ethics or values might affect his performance on the job
Answer:
In simple words, Individual workers' ethical convictions have an impact on team and department productivity as well as individual achievement. Being an ethical worker allows you to be a stronger team participant constantly contributing positively in group situations and just never impeding collective success.
Even though all individuals are important in and of themselves, ethical individuals can be more monetarily useful to their companies as well as more respected by their colleagues and competitors. Reflecting on workplace ethics may help you become a better employee, and it's a good thing to begin if you want to do the right thing all of the time.
Answer:
How can poor ethics devalue you as an asset on the team? Well, if you have poor moral standards and beliefs and what not, people can somewhat easily identify your personality as a negative trait. However if you're a good person with good values and spot on ethics, people will quickly realize that you're a good asset to have on the team.
Your energy, work ethic, and values also determine how good or bad your work ethic is.
Explanation:
For Connections Academy Career Development Unit Test
Zubin Ltd. had set the transfer price at $40 for the purchase of goods from its U.S. subsidiary. But the IRS audited the transfer price and determined that it should have been using a transfer price of $190. Assuming the adjustment results in an increase in U.S. tax liability of $200,000. Determine the penalty amount.
Answer:
Zubin Ltd.
The Penalty amount is:
Minimum = $10,000
Maximum = $50,000
Explanation:
a) Data and Calculations:
Company set transfer price = $40
IRs determined transfer price = $190
Increase in U.S. tax liability = $200,000
IRS penalty rate = 5% minimum for each month of default and not exceeding 25% maximum
Therefore, the penalty amount:
Minimum = $10,000 (5% of $200,000)
Maximum = $50,000 (25% of $200,000)
DW has an ending Retained Earnings balance of $51,600. If during the year DW paid dividends of $4,100 and had net income of $21,100, then what was the beginning Retained Earnings balance
Answer:
$34,600
Explanation:
The computation of beginning retained earnings balance is seen below:
But we know that;
Ending balance of retained earnings = Beginning balance of retained earnings + Net income - Dividend paid
$51,600 = Beginning retained earnings + $21,100 - $4,100
Beginning retained earnings = $51,600 - $21,100 + $4,100
Beginning retained earnings = $34,600
Suppose you've just inherited $10,000 from a relative. You're trying to decide whether to put the $10,000 in a non-interest-bearing account so that you can use it whenever you want (that is, hold it as money) or to use it to buy a U.S. Treasury bond.
The opportunity cost of holding the inheritance as money depends on the interest rate on the bond.
For each of the interest rates in the following table, compute the opportunity cost of holding the $10,000 as money.
Interest Rate on Government Bond (Percent) Opportunity Cost (Dollars per year)
8 _____ (10,000.00 / 800.00 / 0.08 / 8.00 / 125,000.00)
10 _____ (10,000.00 / 10.00 / 100,000.00 / 1,000.00 / 0.10)
What does the previous analysis suggest about for money?
a. The quantity of money demanded decreases as the interest rate rises.
b. The quantity of money demanded increases as the interest rate rises.
c. The supply of money is independent of interest rate.
Answer:
A. $800
B. $1,000
C. a. The quantity of money demanded decreases as the interest rate rises
Explanation:
A. Computation for the opportunity cost of holding the $10,000 as money if Interest Rate is 8%
Opportunity Cost for 8% interest rate=$8%*$10,000
Opportunity Cost for 8% interest rate= $800
Therefore the opportunity cost of holding the $10,000 as money if Interest Rate is 8% will be $800
B. Computation for the opportunity cost of holding the $10,000 as money if Interest Rate is 10%
Opportunity Cost for 10% interest rate =10%*$10,000
Opportunity Cost for 10% interest rate = $1,000
Therefore the opportunity cost of holding the $10,000 as money if Interest Rate is 10% will be $1,000
C. Based on the information given the previous analysis suggest about for money: THE QUANTITY OF MONEY DEMANDED DECREASES AS THE INTEREST RATE RISES.
Which firm is the oligopolist? Choose one: Firm A is in retail. It is one of the largest and most popular clothing stores in the country. It also competes with many rivals and faces intense price competition. Firm B is in the auto rental business. It is not the nation’s largest rental company, but significant barriers to entry enable it to serve customers across the United States more conveniently and at a lower price than local rivals. Firm C is a restaurant in a small, isolated community. It is the only local eatery. People drive from miles away to eat there.
Answer:
Firm B is in the auto rental business. It is not the nation’s largest rental company, but significant barriers to entry enable it to serve customers across the United States more conveniently and at a lower price than local rivals.
Explanation:
For the given options we considered Firm B to be treated as the oligopolist as the firm nor its competitors would have the major impact over the market also there are entry & exit barriers from the market
So the firm B should be chosen as the oligopolist
Therefore the same should be considered and relevant
Which of the following statements is CORRECT? Assume that the project being considered has normal cash flows, with one outflow followed by a series of inflows. Group of answer choices To find a project's IRR, we must find a discount rate that is equal to the WACC. A project's IRR is found by discounting the cash inflows at the WACC to find the present value (PV), then compounding this PV to find the IRR. None of these Answers To find a project's MIRR, we must solve for the discount rate that causes the PV of the inflows to equal the PV of the project's costs. A project's MIRR is found by compounding the cash inflows at the WACC to find the terminal value (TV), then discounting this TV at the WACC
You are offered the following investments: You can invest $500 today and receive $600 in 5 years. The investment is low risk. You can invest the $500 in a bank account paying 4%. What is the implied interest rate for the first choice, and which investment should you choose
Answer:
500
Explanation:
A consumer must spend all of her income on two goods (X and Y). In each of the following scenarios, indicate whether the equilibrium consumption of goods X and Y will increase or decrease. Assume good X is a normal good and good Y is an inferior good.
a. Income doubles.
b. Income quadruples and all prices double.
c. Income and all prices quadruple.
d. Income is halved and all prices double.
Answer:
a. Income doubles
consumption of good X will increase (normal good) will consumption of good Y will decrease (inferior good)b. Income quadruples and all prices double.
consumption of good X will increase (normal good) will consumption of good Y will decrease (inferior good)c. Income and all prices quadruple.
consumption of both goods will remain at the same leveld. Income is halved and all prices double.
consumption of good X will decrease (normal good) will consumption of good Y will increase (inferior good)
You are to make monthly deposits of $1,721 into a retirement account that pays 8 percent interest compounded monthly. If your first deposit will be made one month from now, how large will your retirement account be in 5 years?
Answer:
FV= $126,585.60
Explanation:
Giving the following information:
Monthly deposit (A)= $1,721
Interest rate (i)= 0.08/12= 0.0067
Number of periods (n)= 12*5= 60 months
To calculate the future value, we need to use the following formula:
FV= {A*[(1+i)^n-1]}/i
A= monthly deposit
FV= {1,721*[(1.0067^60) - 1]} / 0.0067
FV= $126,585.60
Carr Inc. purchased equipment for $100,000 on January 1, Year 1. The equipment had an estimated 10-year useful life and a $15,000 salvage value. Carr uses the 200 percent declining balance depreciation method. In its Year 2 income statement, what amount should Carr report as depreciation expense for the equipment
Answer:
$16,000
Explanation:
Calculation to determine what amount should Carr report as depreciation expense for the equipment
First step is to calculate Depreciation under Double declining Balance method
Depreciation under DDB = 2/10 x $100,000
Depreciation under DDB =$ 20,000
Now let calculate what amount should Carr report as depreciation expense for the equipment
Depreciation expense=2/10 *($100,000-$20,000)
Depreciation expense=2/10*$80,000
Depreciation expense= $16,000
Therefore what amount should Carr report as depreciation expense for the equipment is $16,000
Select the behavior that does NOT represent an example of a speaker effectively preparing for a lecture.
a. John types up a copy of his speech in case he has an unexpected moment of stage fright.
b. Eva memorizes her entire speech because she wants to avoid the rigidity of reading off of a piece of paper.
c. Matt has anxiety about giving his speech, so he works on his linguistics homework to distract himself.
d. Molly records herself giving her speech and plays it back to be sure that she is speaking clearly.
Answer:
c. Matt has anxiety about giving his speech, so he works on his linguistics homework to distract himself.
Explanation:
The behavior that represent the examples with respect to the speaker effectively preparing for the lecture are as follows:
a. The john types a copy of his speech where there is non expected moment comes
b. Eva remember her total speech as she want to neglect the rigidity
c, The molly records her speech and she plays it back so to be sure that she speaks clearly or not
So as per the given situation, the option c should be considered
Describe the organizational structure of your school or company. What difficulties have you encountered working within this structure
Answer:
My company have a centralized structure of management framework. Under this structure all the decisions are made by the executive level managers of the company.
The main problem that me and my fellow workers face under this structure is that we do not get any space for creativity and judgement of our own. Also the organisation, do not emphasize on our suggestions that we believe can actually make us more efficient.
A department adds all raw materials to a process at the beginning of the process and incurs conversion costs uniformly throughout the process. For the month of January, there were no units in the beginning work in process inventory; 89100 units were started into production in January; and there were 19200 units that were 50% complete in the ending work in process inventory at the end of January. What were the equivalent units of production for materials for the month of January?
Answer:
the equivalent units of production for materials for the month of January is 89,100 units
Explanation:
The computation of the equivalent units of production for materials for the month of January is shown below:
= Units completed + completed units in ending inventory
= (89,100 units - 19,200 units) + 19,200 units
= 69,900 units + 19,200 units
= 89,100 units
hence, the equivalent units of production for materials for the month of January is 89,100 units
The major advantage of a regular partnership or a corporation as a form of business organization is the fact that both offer their owners limited liability, whereas proprietorships do not. True False
Answer:
True
Explanation:
Some owners of a regular partnership (limited liability partnership) or a corporation (S-corporation) enjoy limited liability, unlike the owners of proprietorships, whose business liabilities and solvency are backed with the personal assets of the owners. The owners of a C-corporation enjoy full limited liability unless the corporate veil is lifted by the court, depending on prevailing circumstances. With limited liability also comes limited participation in the management of the entity.
If fixed costs are $200,000 and the unit contribution margin is $20, what amount of units must be sold in order to have a zero profit
Answer:
the amount of units that should be sold in the case when there is a zero profit is 10,000 units
Explanation:
The computation of the amount of units that should be sold in the case when there is a zero profit is given below:
No. of units to be sold is
= Fixed Cost ÷ Contribution per unit
= $200,000 ÷ $20
= 10,000 units.
hence, the amount of units that should be sold in the case when there is a zero profit is 10,000 units
Ano ang dapat nating tandaan kapag nagbibigay ng pangunang lunas?
name the institution that investigates anti-competitive behaviour on companies in south africa
Explanation:
the competition committee of southafrica, set up in the year 1989 by the southafrica government under the competition act to empower to investigate, control and restrict business, abuse of dominant positions and merges in order to achieve equity and efficiency in the southafrica economy.
Operations Management:is a network of manufacturing and service options.is an essential function for primarily for-profit organizations.is narrowly dedicated to a single corporate function.focuses on decisions about the production and delivery of a firm s products and services.prioritizes sustainability over profits.
Answer:
focuses on decisions about the production and delivery of a firm's products and services.
Explanation:
Operations management can be regarded as a field of business which involves administration of business practices that carried out maximization of efficiency in a firm or an organization. It entails process such as planning, organizing, as well as taking responsibility for processes in organization in order to balance revenues as well as costs. It should be noted that Operations Management focuses on decisions about the production and delivery of a firm's products and services.
What is a certificate of deposit (CD)?
A. A savings product with a guaranteed rate of interest and a maturity date.
B. Written document that proves ownership in a company or a small business.
C. A receipt for buying a mutual fund.
D. A bond with yearly dividends.
Answer:
i believe the answer is b
Compute the direct materials price variance and the direct materials quantity variance. (Indicate the effect of each variance by selecting for favorable, unfavorable, and no variance. Round "Cost per unit" answers to 2 decimal places.) AQ = Actual Quantity SQ = Standard Quantity AP = Actual Price SP = Standard Price
Question Completion:
A manufactured product has the following information for June.
Standard Actual
Direct materials 6 lbs. at $8 per lb. 48,500 lbs. at $8.10 per lb.
Direct labor 2 hrs. at $16 per hr. 15,700 hrs. at $16.50 per hr.
Overhead 2 hrs. at $12 per hr. $198,000
Units manufactured 8,000
Answer:
Direct materials price variance = $4,850 U
Direct materials quantity variance = $4,000 U
Explanation:
a) Data and Calculations:
Actual Standard
Direct materials price per lbs $8.10 $8.00
Direct labor rate per hour $16.50 $16.00
Quantity:
Direct materials 48,500 48,000 (6 * 8,000)
Direct labor hours 15,700 16,000 (2 * 8,000)
Direct materials price variance = SP - AP * AQ
= $8 - $8.10 * 48,500
= $0.10 * 48,500
= $4,850 U
Direct materials quantity variance = SQ - AQ * SP
= 48,000 - 48,500 * $8
= $4,000 U
The following standards for variable manufacturing overhead have been established for a company that makes only one product: Standard hours per unit of output 6.4 hours Standard variable overhead rate $12.80 per hour The following data pertain to operations for the last month: Actual hours 2,650 hours Actual total variable manufacturing overhead cost $34,570 Actual output 150 units What is the variable overhead efficiency variance for the month
Answer:
See below
Explanation:
Given the following;
Standard hours per unit of output 6.4 hours
Standard variable overhead rate $12.80 per hour
Actual hours 2,650 hours
Actual output 150 units
To calculate the variable overhead efficiency variance, we will use the formula below;
Variable overhead efficiency variance
= (Standard quantity - Actual quantity) × Standard rate
Standard quantity = 150 units × 6.4 = 960
Variable overhead efficiency variance
= (960 - 2,650) × $12.80
= $21,632 unfavourable