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3 years ago

Why does a bank sometimes hold excess reserves?

2 answers:

5 0

The answer to the question above is "To maintain its liquidity if customers make demand whether its withdrawal or saving" based on the reserves meaning. A central bank holds the commercial banks excess of capital to maintain their liquidity. A bank will always have the liquidity risk to its business. This reserve is made to assure banks' liquidity.

tamaranim1 [39]3 years ago

5 0

To be sure it can meet its costumers' demands.

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Remo Company and Angelo Inc. are separate companies that operate in the same industry. Following are variable costing income sta

WARRIOR [948]

Answer:

The break-even sales revenue for each company is $82,074 and $240,100 respectively

Explanation:

The computation of the break even point in dollars is shown below

Break even point = (Fixed expenses) ÷ (Profit volume Ratio)

where,

And, Profit volume ratio = (Contribution margin) ÷ (selling price) × 100

So, for Remo Co. would equal to

= ($131,000) ÷ ($430,000) × 100 = 30.46%

And, for Angela Inc would equal to

= ($240,000) ÷ ($430,000) × 100 = 55.81%

And, the fixed expenses is $25,000 and $134,000

Now put these values to the above formula

So, the value would equal to

= (25,000) ÷ (30.46%)

= $82,074

And, for Angela Inc, it would be

= (134,000) ÷ (55.81%)

= $240,100

4 0

3 years ago

Belle Co. has beginning inventory of 12 sets of paints at a cost of $1.50 each. During the year, the store purchased 7 at $3.00,

hichkok12 [17]

The number of additional items that Belle Co. purchased is equal to 27. That is, 7 + 8 + 12 which is equal to 27. The concept of LIFO is "Last In First Out" which means that the ones that has been purchased last should be dispensed off first.

The company sold 31 units. 27 of this is already the newly purchased ones and 4 came from the beginning inventory leaving the number of items to only 8 sets of paint for $1.5.

The cost of the ending inventory is,

I = 8($1.5) = $12

The answer is letter C. $12.00.

6 0

3 years ago

Read 2 more answers

A publicly owned corporation is a company whose shares are held by the investing public, which may include other corporations as

Lubov Fominskaja [6]

Answer:

True

Explanation:

A publicly owned corporation is a company is a company owned by shareholders. This type of company's shares is freely traded on a stock exchange

Characteristics of A publicly owned corporation

Limited liability. the liability of owners are limited to the amount invested
Central management. The company is manged by board of directors and managers and not the shareholders
the company is a legal entity.

6 0

3 years ago

Sara is the team leader for the remote coding project team at her hospital. She has brought together coders, IT technicians, and

harkovskaia [24]

Answer:

Forming.

Explanation:

The forming stage includes a time of direction and acclimating. Uncertainty is high during this stage, and individuals are searching for leadership and authority. A member who declares authority or is educated might be hoped to take control.

6 0

3 years ago

A machine with a book value of $80,000 has an estimated five-year life. A proposal is offered to sell the old machine for $50,50

34kurt

Answer:

Company should continue with old machine (Alternative 1)

Explanation:

Preparation of a differential analysis dated April 11 on whether to continue with the old machine (Alternative 1) or replace the old machine (Alternative 2)

DIFFERENTIAL ANALYSIS

Continue with old machine(Alternative 1) ; Replace with old machine(Alternative 2); Differential effect on income

REVENUES

Proceeds from sale of machine

$0 $50500 $50500

COSTS

Purchase price $0 -$75000 -$75000

Direct labor -$56000 -$37000 19000

(11200*5 = -56000)

(7400*5 = -37000)

Income (loss) -$56000 -$61500 -$5500

Based on the above differential analysis the Company should continue with OLD MACHINE (Alternative 1)

6 0

3 years ago