Answer:
Cash payback period is 7.9 years
Explanation:
Payback period = Initial investment / Cash inflow per period
=$379,200 / $48,000
=7.9 years
Thus, the cash payback period is 7.9 years.
Note: It is assumed that the net annual cash flows are after considering the annual depreciation.
Answer:
$220,000
Explanation:
Calculation to determine How much income from self-employment did Samuel earn from STU
Using this formula
Income from self-employment =Guaranteed payment received+(Interest rate*Ordinary income)
Let plug in the formula
Income from self-employment=$120,000+(25%*$400,000)
Income from self-employment=$120,000+$100,000
Income from self-employment=$220,000
Therefore the amount of income from self-employment that Samuel earn from STU is $220,000
Answer:
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businesseconomicseconomics questions and answersbank three currently has $600 million in transaction deposits on its balance sheet. the federal reserve has currently set the reserve requirement at 6 percent of transaction deposits. a. if the federal reserve decreases the reserve requirement to 4 percent, show the balance sheet of bank three and the federal reserve system just before and after the fullQuestion: Bank Three Currently Has $600 Million In Transaction Deposits On Its Balance Sheet. The Federal Reserve Has Currently Set The Reserve Requirement At 6 Percent Of Transaction Deposits. A. If The Federal Reserve Decreases The Reserve Requirement To 4 Percent, Show The Balance Sheet Of Bank Three And The Federal Reserve System Just Before And After The Full
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Bank Three currently has $600 million in transaction deposits on its balance sheet. The Federal Reserve has currently set the reserve requirement at 6 percent of transaction deposits.
a. If the Federal Reserve decreases the reserve requirement to 4 percent, show the balance sheet of Bank Three and the Federal Reserve System just before and after the full effect of the reserve requirement change. Assume Bank Three withdraws all excess reserves and gives out loans, and that borrowers eventually return all of these funds to Bank Three in the form of transaction deposits.
Panel A: Initial Balance Sheets
Panel B: Balance Sheet after All Changes
b.
Redo part (a) using a 8 percent reserve requirement.
Panel A: Initial Balance Sheets
Panel B: Balance Sheet after All Changes
Expert Answer
89%
Answer and Explanation:
The computation is shown below;
The net profit margin is
= Net income ÷ sales revenue
= $184,000 ÷ $574,000
= 32%
The asset turnover is
= Sales revenue ÷ average of assets
= $574,000 ÷ ($2,142,000 + $1,998,000) ÷ 2
= $574,000 ÷ $2,070,000
= 0.28 times
c. The return on assets is
= Net income ÷ average of assets
= $184,000 ÷ $2,070,000
= 0.089
= 8.89%