Answer:
Interest Rate Collar
Explanation:
This strategy called the Interest Rate Collar.
The Interest rate collar is an option that is used to hedge the interest rate exposure. It protects the borrower from the risk of increasing the interest rate and also decided a floor declining rate by purchasing an interest rate cap.
In the given scenario the Miami Bank will receive when the interest rate crosses the cap of 11% and pay when there is a decrease below the floor rate of 8% on the principal value.
Answer:
$31,670
Explanation:
Given that,
Revenue earned on account during Year 2 = $111,000
Cash collected from its receivables accounts during Year 2 = $76,000
Uncollectibles:
= 3% of its sales on account
= 0.03 × $111,000
= $3,330
Net realizable value of Miller's receivables at the end of Year 1:
= Revenue earned on account - Cash collected from its receivables accounts - Uncollectibles
= $111,000 - $76,000 - $3,330
= $31,670
C. A decrease in the money supply
Nearly 700 banks failed in waning months of 1929 and more than 3,000 collapsed in 1930. Federal deposit insurance was as-yet unheard of, so when the banks failed, people lost all their money. Some people panicked, causing bank runs as people desperately withdrew their money, forcing more banks to close. By the end of the decade, more than 9,000 banks had failed. Surviving institutions, unsure of the economic situation and concerned for their own survival, became unwilling to lend money. This exacerbated the situation, leading to less and less spending.
Answer:
Waterway Industries's total manufacturing costs incurred in 2020 amounted to $2,140,000
Explanation:
The computation of the total manufacturing cost is shown below:
= Raw material + Direct labor cost + Manufactured overhead cost
= $830,000 + $670,000 + $640,000
= $2,140,000
Thus, the total manufacturing cost is comprised of direct raw material, direct labor cost, and the manufacturing overhead cost. That's why we add these three costs.
