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3 years ago

When the fed sells bonds to financial institutions, new money moves directly:?

1 answer:

5 0

When the fed sells bonds to financial institutions, new money moves directly "out of the loanable funds market".

The Federal Reserve System,sometimes alluded to as the Federal Reserve or essentially "the Fed," is the national or central bank of the United States. It was made by the Congress to give the country a more secure, more adaptable, and more steady fiscal and budgetary framework. The Federal Reserve was made on December 23, 1913, when President Woodrow Wilson marked the Federal Reserve Act into law. Today, the Federal Reserve's obligations fall into four general zones.

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A firm considers to buy a machine in 2020. The cost of that machine is $ 5 000 000. The firm uses 5 year straight line depreciat

Kryger [21]

Answer and Explanation:

The computation of the free cash flow of the investment for the year 2020 and 2021 is shown below:

Particulars Case 1 Case 2

Without Investment With Investment

Add: Earnings Before

Interest and

Tax × (1 - Tax Rate) $2,000,000 $2,500,000

Add: Non Cash Expenses $0 $1,000,000

less: Change in

(Current Assets

- Current Liabilities) ($400,000) ($650,000)

Less: Capital Expenditure $0 ($5,000,000)

Free Cash Flows $1,600,000 ($2,150,000)

Working notes:

Particulars Without Investment With Investment

Revenue for the Year 2021 $6,000,000 $9,000,000

Less: Cost of Goods Sold $4,000,000 $5,500,000

(-) Depreciation $0 $1,000,000

Earnings Before

Interest and Tax $2,000,000 $2,500,000

Tax Savings on Depreciation

(Depreciation × 20%) $0 $200,000

Current Assets Without Investment With Investment

Inventories $300,000 $500,000

Accounts Receivable $200,000 $300,000

Total $500,000 $800,000

(Less: Current Liabilities)

Accounts Payable $100,000 $150,000

Less: Change in

(Current Assets

- Current Liabilities) $400,000 $650,000

8 0

3 years ago

Here are some important figures from the budget of Crenshaw, Inc., for the second quarter of 2019. April May June Credit sales $

ruslelena [56]

Answer and Explanation:

The presentation of the cash budget for the three months is shown below:

Particulars April May June

Beginning

cash balance $182,000 $264,650 $434,150

Add:

Cash receipts :

Credit sales

collections $577,750 $622,700 $621,650

Total cash

available $759,750 $887,350 $1,055,800

Less:

Cash disbursements

Purchases -$289,000 -$302,000 -$282,000

Wages, Taxes

and expenses -$137,000 -$129,000 -$179,000

Interest -$15,600 -$15,600 -$15,600

Equipment

purchases -$53,500 -$6,600 -$248,000

Total

cash disbursements -$495,100 -$453,200 -$724,600

Ending

cash balance $264,650 $434,150 $331,200

Working Notes:

Cash collection from credit sales

Particulars March April May June

Credit sales $561,000 $689,000 $598,000 $751,000

Cash collected :

35% cash collected

in month of sales $196,350 $241,150 $209,300 $262,850

60% cash collected

in following month

of sales $0 $336,600 $413,400 $358,800

Total cash

collected from sales $577,750 $622,700 $621,650

7 0

3 years ago

What is the maximum fine that the Real Estate Commission can impose for a violation of commission rules?

-Dominant- [34]

Answer:

varies depending on the state

Explanation:

For example, the Florida Real Estate Commission's (FREC) fines range from $250 to $5,000.

For first offenders, administrative fines range from $250 to $1,000, and the license can be suspended or revoked.

For repeat offenders, administrative fines range from $1,000 to $5,000, and the license can be suspended or revoked.

4 0

3 years ago

The Analytic Hierarchy Process is being employed in a project selection decision. One major criteria, cost, receives a weighting

pshichka [43]

Answer:

Option "4" is the correct answer to the following situation.

Intermediate-term cost receives a weighting of 12%.

Explanation:

<u>GIVEN:</u>

Total cost receives weighting = 40%

short term cost weighting = 50% of (Total cost receives weighting)

= 50% of 40% = 20%

intermediate term cost weighting

= 30% of (Total cost receives weighting)

= 30% of 40% = 12%

long term cost weighting

= 20% of (Total cost receives weighting)

= 20% of 40% = 8%

Therefore option "4" is the correct answer to the above situation.

4 0

2 years ago

Down and Out Co. operates an executive placement service for corporate executives displaced by corporate restructuring. Its mont

lbvjy [14]

Answer:

The average cost at a caseload of 25 attempted placements per month is 105.

Explanation:

The total cost function given in the question first correctly stated as follows:

TC = 25Q^1/2 + 2,500 ................ (1)

A caseload of 25 attempted placements implies that:

Q = 25

Substitute Q = 25 into equation (1), we have:

TC = (25 * 25^(1/2)) + 2,500 = 2,625

The average cost (AC) can now be calculated as follows:

AC = TC / Q = 2,625 / 25 = 105

Therefore, the average cost at a caseload of 25 attempted placements per month is 105.

5 0

3 years ago