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NemiM [27]
3 years ago
11

Consider the following balance sheet for the Wahoo Bank. Use it to answer the two questions that follow. Use a required reserve

ratio of 10% and assume that the bank keeps no excess reserves.
Wahoo Bank Balance Sheet

Assets Liabilities and net worth

Government $1,600 Liabilities:
securities
Required reserves $400
Excess reserves $0
Loans $ 3,000 Checking deposits $4,000
Net worth $1,000
Total assets $5,000

1.What will change on the balance sheet if Shantee withdraws $200 from her checking account?

Choose one or more:

A. Required reserves decrease by $200.

B. Outstanding liabilities increase by $200.

C. Required reserves decrease by $20.

D. Outstanding liabilities decrease by $200.

2.What will change on the bank's balance sheet if Francisco deposits $500 into his checking account?

Choose one or more:

A. Required reserves increase by $50.00.

B. Outstanding liabilities decrease by $500.

C. Outstanding liabilities increase by $500.

D. Required reserves increase by $500.
Business
1 answer:
Vlad [161]3 years ago
4 0

Answer:

1. What will change on the balance sheet if Shantee withdraws $200 from her checking account?

Reserved Ratio = 10% = 200 * 10% = 20

Since Shantee withdraws 200$, The balance of the checking deposits on the liability side will reduce by $200, leaving a balance of $3800.

Under assets, the required reserves will be reduced by 20 leaving a new value of $380 and the loans will be reduced by $180 to $2820.

So the correct answers are:

C. Required reserves decrease by $20

D. Outstanding liabilities decrease by $200.

2. What will change on the bank's balance sheet if Francisco deposits $500 into his checking account?

Reserved Ratio = 10% = 500 * 10% = 50

Checking deposits will be increase by $500 for a total of $4500. Required Reserve will increase by 50 to $450.

So the correct answers are:

A. Required reserves increase by $50.00.

C. Outstanding liabilities increase by $500.

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Retail stores are often classified on the breadth and depth of their merchandise assortment. The breadth of the merchandise is t
Crank

Answer:

<u>narrow</u> ; <u>broad </u>

Explanation:

<em>Retail stores are often classified on the breadth and depth of their merchandise assortment. The breadth of the merchandise is the number of different lines available. The merchandise breadth may be classified as </em><u>narrow</u> or <u>broad</u>.

6 0
2 years ago
Current operating income for Bay Area Cycles Co. is $74,000. Selling price per unit is $120, the contribution margin ratio is 30
NeX [460]

Answer:

1. 6,944 units and $833,333.33

2.  $1,080,000 and  22.83%

Explanation:

The computations are shown below:

1. Break-even point in units

= (Fixed expenses ) ÷ (Contribution margin per unit)  

where,  

Contribution margin per unit = Selling price per unit × contribution margin ratio

= $250,000 ÷ $36

= 6,944 units

Break-even point in sales

= (Fixed expenses ) ÷ (Contribution margin ratio)  

= $250,000 ÷ 30%

= $833,333.33

2. For margin of safety and margin of safety ratio:

Margin of safety = Expected sales - break even sales

where,

Expected sales = (Operating income + fixed expense) ÷ (contribution margin ratio)

= ($74,000 + $250,000)

= ($324,000) ÷ (30%)

= $1,080,000

So, the margin of safety would be

= $1,080,000 - $833,333.33

= $246,667

Margin of safety ratio = Margin of safety ÷ total sales

                                      = $246,667 ÷ $1,080,000

                                      = 22.83%

3 0
3 years ago
4. What is a power machine's "throw"?
RideAnS [48]

Answer:

The machines horsepower

Explanation:

Throwing would simulating moving yes? yes. House power is the amount of horses it would take to pull that car for example 250HP engine would mean it would take 250 horses to pull at that power that engine can pull.

3 0
3 years ago
A parents' group in a small town formed an unincorporated association to run a little league soccer team. Alex was elected presi
Keith_Richards [23]

Answer:

The only person liable for the goods purchased is Alex because he was the person that made the purchases.

Explanation:

Alex is to be held liable because he was authorized to make the purchase. A single member of an unincorporated association is liable for the debts of the organization if they are given authorization to execute a specific act which is seen in this case here.

6 0
3 years ago
The predetermined manufacturing overhead rate for the year was 140% of direct labor cost; employees were paid $17.50 per hour. I
Aleks04 [339]

Answer:

D. $ 367.500

Explanation:

We have to first compute the total direct labor cost. This is done by multiplying the estimated direct labor hours with the hourly rate.

Total Direct Labour costs $ 17.50 per hour * 15,000 hours  =  $ 262,500

Estimated manufacturing overhead per the data in the question is 140 % of Direct labor cost,

Estimated manufacturing overhead is $ 262,500 * 140 % = $ 367,500

5 0
3 years ago
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