One of the best ways to overcome fear is to know what happens in a typical interview

Suppose first main street bank, second republic bank, and third fidelity bank all have zero excess reserves. the required reserv

Dominik [7]

Complete Question:

Suppose First Main Street Bank, Second Republic Bank, and Third Fidelity Bank all have zero excess reserves. The required reserve ratio is 20%. Hubert, a client of First Main Street Bank, deposits $1,500,000 into his checking account at First Main Street Bank.

Complete the following table to reflect any changes in First Main Street Bank's T-account (before the bank makes any new loans).

Answer:

Dr Assets Reserves $1,500,000

Cr Liabilities Deposits $1,500,000

Explanation:

When the bank borrowed $1.5 million, it increased its cash reserves and the liability with the same amount. The increase in the assets side of T-account was $1,500,000 which increased the bank reserves and the increase in the liability side of the T-account was also $1,500,000 which increased the demand deposits.

The addition of reserves means that the bank can make loans to borrowers and earn interest on it. Likewise, the demand deposit can be withdrawn if Hubert wants to withdraw the amount because the bank is the borrower.

The double entry would be as under:

Dr Assets Reserves $1,500,000

Cr Liabilities Deposits $1,500,000

4 0

3 years ago

Diana decided to spend $140 on a pair of new Adidas™ running shoes. She also considered Nike™ and Asics™ shoes. The Nike™ shoes

marta [7]

Answer:

Not buying the Asics or the Nike shoes.

Explanation:

Opportunity cost is an economic expression that refers to alternative buying opportunity decisions that have been waived for another opportunity to apply economic resources to be completed. What influences the opportunity cost is the desire for the acquisition, in the case of Diana she had first choice to buy Adidas shoes, followed by Nike and Asics that could cost a lower amount than she paid in the chosen tennis, but not they had the same added benefits that Diana expected when choosing a good as a first call option.

4 0

3 years ago

Bryan Houlberg expects his C corporation to generate a profit of $200,000. What is Bryan's after-tax cash flow from the corporat

Korolek [52]

Answer:

$\$ 117,937.50$

Explanation:

Corporate level tax on $200,000 is $61,250

Cash(After Corporate tax)= $\$ 200,000 -\$ 61,250=\$138,750$

Individual tax on $138,750(15%)= $0.15\times138750=\$ 20812.5$

Hence, net after tax cashflow :

$\$ 138,750-\$20,812.5\\=\$117,937.50$

5 0

4 years ago

Yams Company reports the following operating results for the month of August: sales $400,000 (units 5,000), variable costs $240,

iogann1982 [59]

Answer:

The profit is higher when there is increase in sales price by 10% than when the Variable Cost is reduced to 55% of sales.

Explanation:

Sales price per unit = (400,000 / 5,000)

Sales price per unit = $80

Sales (5000 x 80) = 400000

Less Variable Cost 240000

Contribution Margin 160000

Less; Fixed Cost 90000

Profit 70,000

Management Consideration 1

When we Increase price by 10%

Increase selling price = 80 + 10/100 * 80

=$68

Sales (5000 x 68) = 440000

Less Variable Cost 240000

Contribution Margin 200000

Less; Fixed Cost 90000

Profit 110,000

Management Consideration 2

When Variable Cost is reduced to 55% of sales

New Variable cost = 80 * 55/100

=$44

Sales (5000 x 68) = 400000

Less Variable Cost (44 * 5000) 220000

Contribution Margin 180000

Less; Fixed Cost 90000

Profit 900,000

Conclusion

The profit is higher when there is increase in sales price by 10% than when the Variable Cost is reduced to 55% of sales.

8 0

3 years ago

Jocassee Furniture Manufacturing, Inc., has a division in the United States that produces and sells furniture for discount furni

Oxana [17]

Answer:

The transfer price is $452.85

Explanation:

The computation of the transfer price is shown below:

= Selling price + shipping cost + import duties - commission charges - advertising expenses

= $450 + $17.50 + $21 - $34 - $1.65

= $452.85

The shipping cost and import duties should be added whereas commission charges and the advertising expenses should be deducted while computing the transfer price

6 0

3 years ago