Answer:
a) it focuses on making a profit like commercial banks.
Explanation:
The Federal Reserve System ( popularly referred to as the 'Fed') was created by the Federal Reserve Act, passed by Congress in 1913, and began operations in 1914. It is just like all central banks, the Federal Reserve is a United States government agency. The following are the responsibilities of the Fed Reserves System;
- It has the power to supervise and regulate banks.
- They promote public goals such as economic growth, low inflation, and the smooth operation of financial markets (monetary policies).
- The Federal Reserve is the "lender of last resort."
Answer:
Bank reconciliation for Miller Co. for August 31
Amount in $ Amount in $
Bank statement Balance 3,868
Add;
Deposits in transit 743
Bank service charge 115
Error in check for supplies 9 867
Deduct;
Outstanding checks 764
Cash account balance 3,971
Explanation:
The bank reconciliation is one done between the balance per the books and balance per the bank statement. This is usually as a result of transactions known as reconciling items.
These are items that have either been recognized in books but yet to be recorded by the bank or vice versa, transactions recorded wrongly by one of the parties etc.
To reconcile the two balance moving from the bank statement balance to the cash account balance;
Deposit in transit has been debited to the cash balance hence it will be added to the bank. Bank service charge has been deducted from the bank and will be added back.
The erroneous recorded of the check shows that the cash account balance was under credited by $9 hence it will added to the bank statement balance. The outstanding check has been deducted from the cash balance and will be deducted from the bank statement balance.
It is sort of outsourcing exercise which is executed as a cost controlling measure thereby enabling management to focus on critical matters.
Explanation:
Here, if in the given case CANE outsources manufacturing activity to an established supplier it can save on hiring factory and cost and lab our overheads and can effectively focus on more critical functions including sales and strengthening supply chain management .
They can effectively deploy capital to more productive options.
This process if considered after due diligence will enable it to improve its financial position.
It only needs to ensure that supplier is committed to service, quality and delivery with flexibility so that financial benefits syncs with the set of expectations.
Answer:
32,500 units must be sold to realize an operating income of $250,000.
Explanation:
a) Calculations:
Using the break-even plus target profit analysis, we can calculate the target quantity of sales that will generate a target profit.
To break-even, the company needs to sell the following quantity,
Break-even point = fixed costs/contribution margin per unit = $400,000/$20 = 20,000 units.
To achieve a target profit, the company needs to sell the following quantity,
Break-even with target profit = (Fixed cost + target profit)/contribution margin per unit = ($400,000 + 250,000) / $20 = $650,000/$20 = 32,500 units.
b) Break-even analysis is a managerial accounting technique for determining the units should a company can sell or produce in order to even revenue and costs. From the analysis, a company can also determine the units to sell in order to realize a target profit. This helps a lot in decision making.
Answer:
Explanation:
Postage expense. 1320
freight out. 1140
miscellaneous exp. 150
Cash. 2610
to replenish petty cash account
note that pettty cash is only debited or credited when you are increasing Or decreasing the petty cash fund. This entry appears to be only replenishing the petty cash account.
