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3 years ago

Use the information presented in Midwestern Mutual Bank's balance sheet to answer the following questions.

Business

1 answer:

ratelena [41]3 years ago

3 0

Answer:

Answer for task 1: Increase

Answer for task 2: debt

Answer for task 3: -13.33

Answer for task 4: -14.00

Answer for task 5: reserve requirement

Explanation:

Task 1:

In the given question, the owner has borrowed $100 supplement to their existing reserves. Since the owner has borrowed, the value of debt would increase.

Task 2:

Leverage ratio before borrowing:

Leverage ratio = $\frac{Total assets}{Capital}$

Leverage ratio = $\frac{200 + 800+1000}{-150}$

Leverage ratio = -13.33

The leverage ratio before borrowing is - 13.33

Task 3:

Leverage ratio after borrowing:

Leverage ratio = $\frac{Total assets}{Capital}$

Leverage ratio = $\frac{2000 + 100}{-150}$

Leverage ratio = -14.00

The leverage ratio after borrowing is - 14.00

Task 4:

This would also bring the leverage ratio from its initial value of -13.33 to a new value of -14.00.

Task 5:

Which of the following do bankers take into account when determining how to allocate their assets? Check all that apply.

The option is "b"

When determining how to allocate their assets bankers take into account the reserve requirement.

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FromTheMoon [43]

Answer:

INCOME EFFECT

Explanation:

Income Effect means change in real income/ purchasing power due to change in price, income staying same.

Price Increase reduces real income/ purchasing power, income staying same - because consumer can purchase less from same income.
Price decrease increases real income/ purchasing power, income staying same - because consumer can purchase more from same income.

Eg: Income, price of a consumer = Rs100, Rs10 respectively.

Real Income = Income/price = 100/10 = 10. Price fall to 8 increases purchasing power to 12.5 (100/8). Price rise to 12 decreases purchasing power to 8.3 (100/12).

Income Effect : stating - lower purchasing power at higher prices, reduces consumption of all goods and higher purchasing power at lower prices, increases consumption of all goods.

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3 years ago

A foreign company (whose sales will not affect cornish's market) offers to buy 3,000 units at $17.00 per unit. in addition to va

Marianna [84]

Trescott company had the following results of operations for the past year:

Sales (20,000 units at $22) $440,000

Direct materials and direct labor $200,000

Overhead (40% variable) 100,000

Selling and Administrative expenses (all fixed) 92,000 (392,000)

Operating income $ 48,000

A foreign company (whose sales will not affect Trescott's market) offers to buy 3,000 units at $17.00 per unit. In addition to the variable manufacturing costs, selling these units would increase fixed overhead by $500 and selling and administrative costs by $1,000. If Trescott accepts the offer, its profits will increase (decrease) by:

Answer : If Cornish accepts this order, its profits will increase by $13,500.

Calculation of Variable Costs per unit :

Direct Material and labor per unit = Total Direct Material and labor / No. of units sold

Direct Material and labor per unit =200000/20000 = $10

Variable Overhead per unit = Total Variable Overhead / No. of units sold

Variable Overhead per unit = (100000*0.4)/20000 = $2

Variable Cost per unit = $12 (Direct Material and labor per unit + Variable Overhead per unit)

Selling price of new order = $17 per unit

No. of units = 3,000

Increase in Fixed Costs = Inc in fixed overhead + inc in S&A Expenses

Increase in Fixed Costs = $1500 (500 + 1000)

Total Cost of new order = (Variable Cost per unit * No. of units) + Increased Fixed Cost

Total Cost of new order = (12*3000) + 1500 = $37,500

Total Revenues from new order = Selling price per unit * No. of units sold

Total Revenues = $51,000 (17 *3,000)

Profit from new order = Total Revenues from new order - Total Cost of new order

Profit from new order = 51000 - 37500 = $13,500

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3 years ago

What is comparing the cost of a business plan to the monetary value of the benefit derived from the same plan known as?

anzhelika [568]

C. net present value analysis i think

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Which of the following actions should Reece Windows take if it wants to reduce its cash conversion cycle?a. Take steps to reduce

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Cash conversion cycle simply measures the length by which there will be deprivation of cash for a firm when the firm increases its investment in its inventory so that customer sales can be expanded

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Omar is responsible for marketing and marketing research for a midsized manufacturer of assemblies for the housing market. His b

Anna [14]

Answer:

"Those are secondary data, and they may not be as timely, accurate, and relevant as what we need. Our decisions may not be as good, and we'll run a huge risk."

Explanation:

By collecting data to perform a search, two types of data are recorded:

primary: These are the original data, ie, those that were not previously collected and there is no study related to a prospective sample. It is the data collected to satisfy the need for a specific search.

secondary: These are those that already exist from other research and are available for access from sources such as internet, magazine, newspaper and database.

Primary data is the most recommended for marketing research because it is the data you want to know, be it consumer behavior, age, income and other relevant variables to help an organization develop more effective strategies to meet the needs of the consumer. your audience that were determined through search.

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