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3 years ago

Why might a bank be willing to borrow funds from other banks at a higher rate than the rate at which it can borrow from the fed?

1 answer:

3 0

Because when a bank borrows money from the Fed it has to out toward collateral. Central banks in turn will want extra regulation, depending on the banks rep. As well as banks borrow too frequently from the Fed, resulting in the Fed restricting the ability to borrow in the future.
hope this helps!

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Economic Ordering Quantity (EOQ). The Gentry Garden Center sells 100,000 bags of lawn fertilizer annually. The optimal safety st

GalinKa [24]

Answer:

1. Annual demand ( D) = 100,000 bags

Ordering cost per order (Co) = $15

Holding cost per item per annum (H) = 15% x $2 = $0.30

EOQ = √2DCo

EOQ = √2 x 100,000 x $15

0.30

EOQ = 3,162 units

2. Maximum inventory

= Safety stock + EOQ

= 1,500 + 3,162

= 4,662 units

3. Average inventory

= EOQ/2

= 3,162

= 1,581 units

4. Number of order

= Annual demand

EOQ

= 100,000

3,162

= 32 times

Explanation:

EOQ is the square root of 2 multiplied by annual demand and ordering cost per order divided by holding cost per item per annum.

Maximum inventory is the aggregate of safety stock and EOQ.

Average inventory is economic order quantity divided by 2

Number of order is the ratio of annual demand to economic order quantity.

3 0

3 years ago

Cabinaire Inc. is one of the largest manufacturers of office furniture in the United States. In Grand Rapids, Michigan, it assem

Ivahew [28]

Answer:

Results are below.

Explanation:

Giving the following information:

Supervisor salaries $117,000 per month

Depreciation $21,000 per month

Direct labor rate $15 per hour

Cabinets per hour= 60/20= 3

We need to determine the flexible budget for different production levels:

12,000 units:

Total direct labor hours= (12,000 / 3)= 4,000 hours

Total variable cost= 4,000*15= 60,000

Total fixed costs= 21,000 + 117,000= 138,00

Total cost= $198,000

15,000 units:

Total direct labor hours= (15,000 / 3)= 5,000 hours

Total variable cost= 5,000*15= 75,000

Total fixed costs= 21,000 + 117,000= 138,00

Total cost= $213,000

18,000 units:

Total direct labor hours= (18,000 / 3)= 6,000 hours

Total variable cost= 6,000*15= 90,000

Total fixed costs= 21,000 + 117,000= 138,00

Total cost= $228,000

3 0

3 years ago

Anchor Company purchased a manufacturing machine with a list price of $93,000 and received a 2% cash discount on the purchase. T

r-ruslan [8.4K]

Answer:

$100,340

Explanation:

The amount of cost recorded in the asset account would be:

List price $93,000

Less: Discount ($93,000*2%) $1,860

Add: Freight $3,800

Add: Installation&Testing $5,400

Cost of the machine $100,340

Note: Insurance cost is not included in the cost of the machine

6 0

3 years ago

Oaktree Company purchased new equipment and made the following expenditures:

I am Lyosha [343]

Answer:

The Journal entries are as follows:

(1)

Equipment A/c Dr. $71,890

To cash $3,790

To accounts payable $68,100

(To record the purchase of equipment)

Workings:

Equipment value:

= Purchase price + Sales tax + Freight charges for shipment of equipment + Installation of equipment

= 64,000 +4,100 + 890 + 2,900

= $71,890

Cash Paid:

= Freight charges for shipment of equipment + Installation of equipment

= 890 + 2,900

= $3,790

Accounts payable = Purchase price + Sales tax

= 64,000 +4,100

= $68,100

(2)

Prepaid Insurance A/c Dr. $1,090

To cash A/c $1,090

(To record any expenditures not capitalized in the purchase of equipment)

7 0

3 years ago

Samson, Inc. had the following balances and transactions during 2019: Beginning Merchandise Inventory 10 units at $ 94 March 10

lubasha [3.4K]

Answer:

The answer is attached;

Explanation:

Download xlsx

3 0

3 years ago