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4 years ago

5

Suppose you deposit 1700 cash into your checking account. by how much will the total money supply increase as a result when the

required reserve ratio is 0.20

1 answer:

dexar [7]4 years ago

4 0

The term fractional reserves refers to<span>Reserves being a fraction of total deposits</span>

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On July 9, Mifflin Company receives an $7,200, 90-day, 8% note from customer Payton Summers as payment on account. What entry sh

Dmitry [639]

Answer:

Oct 6 Cash 7344 Dr

Interest Revenue 144 Cr

Notes Receivable 7200 Cr

Explanation:

First we calculate the day on which notes receivable is due.

We start from July 9 as being our first day and in July there are 31 days so 31 - 8 = 23

In August there are 31 days.

In September there are 30 days.

So total days till september are 22+31+30 = 84

So the note is due to be received on October 6.

The amount of interest due is 7200 * 0.08 * 90/360 = $144

The entry to be passed on Oct 6 is a debit to cash for the amount of principal and interest (7200+144) and a credit to interest revenue of 144 and notes receivable of 7200

7 0

4 years ago

An investment of $115 generates after-tax cash flows of $50 in Year 1, $90 in Year 2, and $150 in Year 3. The required rate of r

WINSTONCH [101]

Answer:

The correct answer is B.

Explanation:

Giving the following information:

An investment of $115 generates after-tax cash flows of $50 in Year 1, $90 in Year 2, and $150 in Year 3.

Rate of return= 20%

To calculate the present value, we need the following formula:

NPV= -Io + ∑[Cf/(1+i)^n]

Cf= cash flow

Io= 115

Cf1= 50/ 1.20= $41.67

Cf2= 90/1.2^2= $62.5

Cf3= 150/1.2^3= $86.81

NPV= -115 + (41.67 + 62.5 + 86.81)

NPV= $75.98

6 0

3 years ago

The following selected transactions apply to Topeca Supply for November and December Year 1. November was the first month of ope

vitfil [10]

Answer:

Note: See attached excel file for the record of the effect of the given transactions in a horizontal statements model.

In the attached excel file, we have:

Assets = Liabilities + Stockholders' Equity = $152,155

Explanation:

In the attached excel file, we have:

Sales tax payable on sales for November Year 1 = $65,500 * 9% = $5,895

Sales tax payable on sales for December Year 1 = $79,500 * 9% = $7,155

Assets = $152,155

Liabilities + Stockholders' Equity = $7,155 + $145,000 = $152,155

Therefore, the accounting equation is proved as follows:

Assets = Liabilities + Stockholders' Equity = $152,155

6 0

3 years ago

Matthew Granger is a member of the board of directors at Produxicore Inc. Over a period of one year, Matthew failed to attend mo

FrozenT [24]

Answer: Negligence of duties

Explanation:

As a board member it's one of his primary duty to keep abreast of the firm performance. Not been aware for a year on the excuse of not been informed and not seeking to find out personally shows a negligence of duties.

7 0

3 years ago

Xenox Company had net credit sales during the year of $1300000 and cost of goods sold of $800000. The balance in accounts receiv

Lunna [17]

Answer:

8 times

Explanation:

Financial Statements depicts the financial position of a firm at a particular point of time or specified date. The users of financial statements use various types of analysis to understand or compare the current financial statements of the company to prior years or with those of the competitors.

‘Ratio Analysis’ is used to analyze the performance of a company. It is used to analyze the liquidity, profitability, solvency and operational efficiency of the company.

Given:

Net credit sales = $1,300,000

Beginning accounts receivable = $185,000

Ending accounts receivable = $140,000

Accounts receivable turnover is the ratio of net credit sales to average accounts receivable.

It can be calculated as:

Average accounts receivable = $\frac{Beginning accounts receivable + Ending accounts receivable}{2}$

Average accounts receivable = $\frac{185,000 + 140,000}{2}$

Average accounts receivable = $\frac{325,000}{2}$

Average accounts receivable = $162,500

Accounts turnover ratio = $\frac{Net credit sales}{Average accounts receivable}$

Accounts turnover ratio = $\frac{1,300,000}{162,500}$

Accounts turnover ratio = 8 times

4 0

3 years ago