Describe why cash flow management is important to a business and its financial health. Use a recent financial news story as an e
1 answer:
You might be interested in
Answer:
Answer for task 1: Increase
Answer for task 2: debt
Answer for task 3: -13.33
Answer for task 4: -14.00
Answer for task 5: reserve requirement
Explanation:
<u>Task 1:</u>
In the given question, the owner has borrowed $100 supplement to their existing reserves. Since the owner has borrowed, the value of debt would <u>increase</u>.
<u>Task 2:</u>
<u>Leverage ratio before borrowing:</u>
Leverage ratio =
Leverage ratio =
Leverage ratio = -13.33
The leverage ratio before borrowing is - 13.33
<u>Task 3:</u>
<u>Leverage ratio after borrowing:</u>
Leverage ratio =
Leverage ratio =
Leverage ratio = -14.00
The leverage ratio after borrowing is - 14.00
<u>Task 4:</u>
This would also bring the leverage ratio from its initial value of -13.33 to a new value of -14.00.
<u>Task 5:</u>
<u>Which of the following do bankers take into account when determining how to allocate their assets? Check all that apply.</u>
The option is<u> "b"</u>
When determining how to allocate their assets bankers take into account the reserve requirement.