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torisob [31]
3 years ago
15

Angus Bank holds no excess reserves but complies with the reserve requirement. The required reserves ratio is 8​%, and reserves

are currently ​$25 million. The amount of deposits is ​$ 312.5 million. ​(Round your response to one decimal​ place.) The reserve shortage created by a deposit outflow of ​$4 million is ​$ ____ million.
Business
1 answer:
grandymaker [24]3 years ago
3 0

Answer:

$3.68 million

Explanation:

Reserve Ratio = 8%

Reserves are currently = ​$25 million

Amount of deposits = ​$ 312.5 million

Deposit outflow = ​$4 million

Remaining Deposits =  Amount of deposits - Deposit outflow

                                  = $ 312.5 million - $4 million

                                  = $308.5 million

Current Required Reserve after outflow of deposits(CR):

= $25 million - ​$4 million

= $21 million

Therefore,

Shortage of Reserve = CR - (Remaining Deposits × Reserve Ratio)

                                   = $21 - ($308.5 × 0.08)

                                   = $21 - $24.68

                                   = -($3.68)

Therefore, the reserve shortage created by a deposit outflow of ​$4 million is ​$3.68 million

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On January 2, 2018, Howdy Doody Corporation purchased 15% of Ranger Corporation's common stock for $58,000. Ranger's net income
insens350 [35]

Answer:

Howdy Doody show in the 2018 income statement as income from this investment is $24225

Explanation:

given data

purchased = 15%

common stock = $58,000

net income 2018 = $15,000

net income 2019 = $58,000

dividend  = $61,500

fair value = $73,000

to find out

How much Howdy Doody show in the 2018 income statement as income from this investment

solution

we know that net income to be reported as income by investment is the sum of income from dividend + unrealised gain

so here

unrealised gain = increase in value of stock that is

= $73,000 - $58,000 = $15000      .............1

and

income from dividend is  = 15 % of $61,500

income from dividend = $9225       .................2

now add equation 1 and 2

Howdy doody show in 2018 income statement as income from this investment = Dividend revenue + Unrealized holding gain

income statement = $9225 + $15000

income statement = $24225

4 0
3 years ago
Arnie made 800,000 after deducting expenses when he sold the helicopter
Maksim231197 [3]
I think the correct answer is c , hope I helped
6 0
3 years ago
Bustillo Inc. is working on its cash budget for March. The budgeted beginning cash balance is $51,000. Budgeted cash receipts to
Julli [10]

Answer:

$16,000

Explanation:

Data provided

Ending cash balance = $72,000

Beginning cash balance = $51,000

Cash receipts = $135,000

Cash disbursements = $130,000

The computation of cash borrowing is shown below:-

Ending cash balance = Beginning cash balance + Cash receipts - Cash disbursements + Cash borrowings

$72,000 = $51,000 + $135,000 - $130,000 + Cash borrowings

Cash borrowings = - $72,000 + $51,000 + $135,000 - $130,000

= $186,000 - $202,000

= $16,000

3 0
3 years ago
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sertanlavr [38]

Answer:

D. May require losing money fighting the first potential entrant.

Explanation:

In this form of gaming, or in this game theory, it is said to be played over and over and could possible be in a probability form that is why that possibly, as a player, you may require loosing money fighting the first potential entrant.

Fighting the first entrant, possibility of cooperating means that their could be a possible compromise in order to carry on accepting a payoff over a certain period of time, knowing that if we do not uphold our end of the deal, our opponent may decide not to either.

3 0
3 years ago
T/F A company that uses tight cost controls is likely to use a low-cost leadership strategy.
VMariaS [17]
True, but may also be false depending on what "tight budget" that company wants.

Hope this helps!
8 0
3 years ago
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