Answer:
D. Loans are the largest assets and deposits are the largest liabilities
Explanation:
Banks represent financial institutions wherein customers can either save their money or borrow money. Banks ideally serve as an intermediary between borrowers and lenders.
Banks avail funds from the lenders who want to deposit and keep their money safe. Such depositors are paid an interest on the money deposited. Out of the pool of funds created through such deposits, a bank lends these funds to the borrowers who are in need at a rate higher than the rate it provides to it's depositors.
Thus, the money granted as loan to the borrowers by a bank represent it's largest assets, which it will receive in future. While deposits, which the bank has to return to the depositors upon demand, represent a bank's largest liabilities which it must meet.
Answer:
$1,500
Explanation:
The computation of the firm operating income is shown below:
= Sales - operating cost other than depreciation - depreciation expenses
= $9,000 - $6,000 - $1,500
= $1,500
We simply deduct the operating cost and the depreciation expenses from the sales revenue amount to find out the earnings before income and taxes (EBIT) or firm operating income
Answer:
16.1 days
Explanation:
Note: The full question is attached as picture below
Daily demand d = 520
Annual demand D = 520*250 = 130000
Setup cost S = $680
Production rate p = 875
Holding cost H = 0.25*25 = 6.25
Optimal order quantity Q
Q = 8350
Length of production run = Q/d
Length of production run = 8350/520
Length of production run = 16.05769230769231
Length of production run = 16.1 days
Answer:
Production= 15,000 units
Explanation:
Giving the following information:
Sales:
Q2=14,000
Q3=18,000
The ending inventory of finished goods for each quarter should equal 25% of the next quarter's budgeted sales in units.
To calculate the production for the second quarter, we need to use the following formula:
Production= sales + desired ending inventory - beginning inventory
Production= 14,000 + (18,000*0.25) - (14,000*0.25)
Production= 15,000 units
Answer:
93 units
Explanation:
Annual demand for an item = 11,000 units
cost per unit = $250
holding rate = 10%
Order cost = $14.00 per order
No. of days in a year = 260
Lead-time = 2 days
= 42.3 units
For a service level of 97%, the value of z is 1.881
Therefore,
Reorder point:
= Average daily demand × Lead time + Standard deviation of the daily demand × no. of standard deviation corresponding to service level probability × 
= (42.3 × 2) + (3 × 1.88 × 
)
= 92.57
= 93 units
