Answer:
Total asset = 55000
Explanation:
Below is the following calculations:
Cash amount = 20000
Fixed assets = 35000
Accumulated depreciation = 20000
Accounts payable = 5000
The total assets = Cash + fixed assets
Total asset = 20000 + 35000
Total asset = 55000
Not- Accumulated depreciation should be deducted from the gross assets.
Answer:
Preparation of a statement of cash flows involves five steps
1. Compute net cash provided or used by operating activities.
This is the section where all the cash flow that belongs to the operating section are been added and subtracted according to the inflow and outflow of the transaction.
2. Compute net cash provided or used by investing activities.
This is the section where all the cash flow that belongs to the investing section are been added and subtracted according to the inflow and outflow of the transaction.
3. Compute net cash provided or used by financing activities.
This is the section where all the cash flow that belongs to the financing section are been added and subtracted according to the inflow and outflow of the transaction.
4. Compute the net increase or decrease in cash
This is the section where the cash-flow from operating, investing and financing activities is been balanced.
5. Report the beginning and ending cash balances and prove that the ending cash balance is explained by net cash flows.
After the cash-flow from operating, investing and financing activities is been calculated, Then, this section is also computed to derive the Closing/Ending cash balance
Answer:
The current yield is 6.37255%
Explanation:
In order to calculate the current yield we would have to make the following calculation:
Current yield=coupon bonds percentage*100/percentage amount of sale
According to the given data w have the following:
coupon bonds percentage=6.5 percent coupon bonds on the market
percentage amount of sale=currently sell for 102 percent of par
Therefore, Current yield=6.5%*100/102
Current yield=6.37255%
The current yield is 6.37255%
Answer:
A stock market crash will cause aggregate demand to decrease, which the Fed could offset by purchasing bonds.
Explanation:
A stock market crash happens when the prices of stocks fall generally and suddenly that investors are taken unawares. It triggers some reactions which further threatens the market overall and depresses aggregate demand. It also weakens investors' confidence, reduces productivity, consumption, and the ability of firms to fund their activities, and leads the economy to recession.
Stock market crashes are triggered by unexpected economic event, catastrophe, or crisis. For example, the collapse of Lehman brothers as a result of bankruptcy. They are further exacerbated by panic reactions, underlying economic underperformance, and investors' fear.
The Fed as the US central bank in charge of the monetary policy can try to stem the downward spiral caused by a stock market crash by purchasing bonds. This makes more money available in the economy for consumption.
Before the crash, the Fed can decide to bail out the institution, e.g. an airline or a financial institution, that could trigger a crash. But, most stock market crashes are not foreseen.