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2 years ago

If you look at average interest rates on savings accounts today, how do they compare with inflation?.

Business

1 answer:

Alina [70]2 years ago

7 0

The average interest rates on savings account today compared to inflation shows that inflation is higher.

<h3>How are savings interest rates and inflation related?</h3>

The current interest rates on savings accounts in the U.S. on average is about 0.08%.

Inflation on the other hand, is 9.1%. This shows that inflation massively outstrips the average savings interest rates.

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1. Prepare journal entries to record the following hypothetical 2006 events:a. A customer deposits $50,000 in WaMu savings accou

BARSIC [14]

Answer:

1. A. Dr Cash 50,000

Cr Customers Saving Account 50,000

B.Dr Interest Expense 125

Cr Cash 125

C. Dr Loan Receivables 50,000

Cr Cash 50,000

D. Dr Interest Receivables 750

Cr Interest Income 750

2. $625

Explanation:

Answer and Explanation:

1. Preparation of journal entries

a. In a situation where A customer made deposits of the amount of $50,000 in WaMu savings account on 1/1/2006 the Journal entry will be:

Dr Cash 50,000

Cr Customers Saving Account 50,000

(Being to record the deposit from customers)

b. In a situation where WaMu pays a 1% as annual interest on the deposit on 3/31/06 the journal entry will be:

Dr Interest Expense 125

(50,000*1%*3/12)

Cr Cash 125

(Being to record the payment of interest Expense)

c. In a situation where WaMu lends out the

amount of $50,000 to another customer the Journal entry will be:

Dr Loan Receivables 50,000

Cr Cash 50,000

(Being to record the receivable lent to customers)

d. In a situation where WaMu accrues interest on this date 3/31/06 the journal entry will be:

Dr Interest Receivables 750

(50,000*6%*3/12)

Cr Interest Income 750

(Being to record the interest accrued)

2. Calculation for How much net interest income (profit) did WaMu earn in the first quarter

First step is to calculate the Net Interest Rate

Interest Rate on Receivables 6%

Less Interest Rate on Payable 1%

Net Interest Rate 5%

Second Step will be to calculate the Annual Net Interest

Using this formula

Annual Net Interest=Principal *Net Interest Rate

Let plug in the formula

Annual Net Interest=50,000*5%

Annual Net Interest= 2,500

Last step is to calculate the first quarter net interest income

Using this formula

First quarter net interest income=Time*Annual Net Interest

Let plug in the formula

First quarter net interest income= 3/12*2,500

First quarter net interest income= $625

Therefore the First quarter net interest income will be $625

7 0

3 years ago

All of the following are ways an organization that incorporates enterprise-wide risk management (ERM) with its strategic plannin

sergeinik [125]

All of the following are ways an organization that incorporates enterprise-wide risk management (ERM) with its strategic planning process improves its decision-making, EXCEPT It can eliminate risks to its business model.

A business model describes how an organization creates, delivers, or acquires value in an economic, social, cultural, or other context. The process of building and modifying business models, also called business model innovation, is part of business strategy.

The term business model describes a company's profit plan. Identify the products or services that the company plans to sell, the identified target markets, and the expected costs. Business models are important for both new and established companies.

In its simplest form, a business model provides information about an organization's target markets, the needs of those markets, and the role a company's products or services play in meeting those needs. Business model innovation describes the process by which an organization adapts its business model.

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8 0

1 year ago

Tubaugh Corporation has two major business segments--East and West. In December, the East business segment had sales revenues of

kicyunya [14]

Answer:

<em>Net operating Income of the company 130,000</em>

Explanation:

$\left[\begin{array}{cccc}-&East&West&Total\\Sales&690,000&140,000&830,000\\Variable&352,000&56,000&408,000\\Contribution&338,000&84,000&422,000\\Fixed Cost&104,000&24,000&292,000\\Income&234,000&60,000&130,000\\\end{array}\right]$

We have to arrange the values, and don't forget to add the common fixed cost of 164,000 in the total fixed cost line.

Net operating Income of the company 130,000

7 0

4 years ago

Presented below is information related to Concord Company. Date Ending Inventory (End-of-Year Prices) Price Index December 31, 2

castortr0y [4]

Answer:

See the explanation for the answer

Explanation:

Year Inventory at Price Inventory at Change Dollar value

end of year Index base year from prior LIFO

price prices year inventory

$ $ $ $

2017 83,200 100 83,200 - 83,200

2018 145,934 131 111,400 28,200 120,142

2019 142,950 150 95,300 (16,100) 99,051

2020 161,696 163 99,200 3,900 105,408

2021 193,200 175 110,400 11,200 125,008

2022 227,698 181 125,800 15,400 152,882

Dollar value LIFO inventory :

December 31, 2017: $ 83,200 x 100 / 100 = $ 83,200

December 31, 2018 : $ 83,200 + $ ( 28,200 x 131/100) = $ 120,142

December 31, 2019 : $ 83,200 + $ ( 28,200 - 16,100 x 131/100) = $ 99,051

December 31, 2020 : $ 99,051 + $ 3,900 x 163/100 = $ 105,408

December 31, 2021 : $ 105,408 + $ 11,200 x 175/100 = $ 125,008

December 31, 2022 : $ 125,008 + $ 15,400 x 181/100 = $ 152,882

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3 years ago

Analog televisions, such as the one shown above, are in which stage of their product life cycle according to the textbook? accel

Ludmilka [50]

The answer is the decline stage. The decline stage of a product life cycle happens when sales drop which may be in arrears in large part to new technologies or innovations that replace existing as was the case with analog television sets. Digital technologies directed to the progress of standard which is high definition then 3D HDTV and now organic light-emitting diode 3D smart HDTVs.

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3 years ago