When a bank holds a minimum amount as reserves as required by law, this is the <u>required reserves. </u>
<h3>What are required reserves?</h3>
These are a certain percentage of every deposit made into a bank that they are to keep as reserves and not loan out.
These reserves are to ensure that the bank still has some money to pay out to depositors even in the event of financial crises. They are also useful in government monetary policy.
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Answer:
Explanation:
Total cost per unit <u><em>(Which is calculated by adding up the fixed costs and variable costs and dividing by the overall quantity of units produced.)</em></u> is calculated below:
(20 + 30 + 8 + 13 + 12 + 7)
90
Desired return
20% on 1440000
288000
Per unit 288000/10000.
28.8
Markup on cost
Desired return per unit
28.8
Cost 90
28.8 /90 = 32% on cost
Target sale price
90+28.8
= 118.8
In the scenario in which, Elena who loves orange juice, reads in the newspaper that 20 percent of the Florida orange crop was destroyed by a late spring frost and economists predict that the price of oranges will rise by 50 percent by the end of the year. As a result, Elena's demand for orange juice increases today.An increase in the price of a good will decrease quantity demanded.
Answer:
Explanation:
1. The computation of the ending retained earning balance is shown below:
The ending balance of retained earning = Beginning balance of retained earnings (+ net income /- net loss) - dividend paid
= $50,000 - $5,500 - $10,000
= $34,500
2. The Net income would be zero As the debit side total is $75,500 which indicates total expenses whereas the credit side would be revenues + loss = $70,000 + $5,500 = $75,500
3. The journal entry is shown below:
Income summary A/c Dr $5,500
To Retained earning $5,500
(Being the difference is credited to retained earning)