Answer:
c
Explanation:
Reserve ratio is the percentage of deposits that is required of commercial banks to keep as reserves. The lower the ratio, the higher the increase in money supply
Money multiplier = 1 / reserve requirement
Money multiplier when reserve ratio is 10% = 1/10 = 0.1 = 10%
Money multiplier when reserve ratio is 20% =1/20 = 0.05 = 5%
there is a decrease of money multiplier from 5% to 10% when reserve ratio is increased from 10 percent to 20 percent
Answer:
The return on equity for 2017 is 21.46 %
Explanation:
Return on equity measures the return earned on the owners investment in the company.
<em>Return on equity = Net Income for the year / Total Shareholders Funds × 100</em>
= $822 / ( $2,980 + $850) × 100
= 21.4621 or 21.46 %
Note : That Retained earning is part of Owners Investment.
Conclusion :
The return on equity for 2017 is 21.46 %
Answer:
a. Total labor variance:
= (Actual labor cost - Standard labor cost) * No of returns completed
= [ (34.50 * 3.6) - (30 * 4) ] * 600
= $2,520 Unfavorable
<em>Unfavorable because the budget was exceeded by the actual costs. </em>
b. Labor Price variance:
= (Actual labor cost - Standard labor cost) * Actual hours
= (34.50 - 30) * 600 returns * 3.6 hours per return
= $9,720 Unfavorable
<em>Budget was exceeded so unfavorable. </em>
c. Labor usage variance:
= (Actual labor hours - Standard labor hours) * Standard labor rate
= [ (3.6 hours * 600 returns) - (4 hours * 600) ] * 30
= -$7,200
= $7,200 favorable
<em>Budget was not exceeded so this is a Favorable variance. </em>
Answer:
The accounts receivable amount expected to be collected after adjustment is:
1382000
Explanation:
Account Receivable Allowance Net Receivable
Begining balance_________1510000_______91400____1418600
_____________________________36600___-36600
Ending balance___________1510000______128000____1382000
The accounts receivable amount expected to be collected after adjustment is:
1382000
Answer:
Fixed cost= $100
Explanation:
The high low method considers the level of highest activity and lowest activity, and compares cost at each of these levels.
It is a useful way of calculating variable cost and fixed cost.
The variable cost= (High activity cost - Low activity cost)/ (High activity units- Low activity units)
Variable cost= (1,100-900)/ (2,500-2,000)
Variable cost = 200/500= $0.4
Fixed cost= High activity cost- (variable cost* High activity units)
Fixed cost= 1,100- (0.4* 2,500)
Fixed cost= 1,100- 1,000
Fixed cost= $100
