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3 years ago

A sale of securities by the Fed causes

Business

1 answer:

jeyben [28]3 years ago

7 0

Answer:

D) A multiple contraction of the money supply greater than the amount of the securities sold.

Explanation:

When the fed sells securities in the open market, it obtains dollars, and keeps those dollars from circulating, in other words, in reduces the money supply.

The contraction in the money supply is greater than the amount of securities sold because of the money multiplier.

When the fed sells securities, it reduces the monetary base, which is equal to:

B = C + D

Where:

B = Monetary base

C = Cash in hands of the public

D = Demand deposits

And the money supply is equal to:

M = m x B

Where:

M = money supply

m = money multiplier

B = Monetary base

Because of the money multiplier, any contraction or expansion in the monetary base has a multiplying effect in the money supply.

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Tony's Beach T-Shirts has fixed annual operating costs of $75,000. Tony retails his T-shirts for $14.99 each and the variable co

Andreyy89

Answer:

$112.425

Explanation:

breakeven is

first we need to understand the concept of breakeven:

breakeven in sales makes reference to the amount of revenue in dollars at which a company has a profit of zero ($0.00). covering the underlying fixed expenses of a busines

with this concept we have that :

Total Costs = fixed annual operating cost + variable cost + sold units

Revenue = Total Costs

14.99 * sold units = 75,000 + 4.99 * units

10 * sold units = 75,000

breakeven = 7,500 units

now we can have the breakeven in dollars doing the convertion

breakeven = breakeven in units * prices

breakeven= 7,500 units * $14.99/unit

breakeven = $112,425

8 0

3 years ago

An increase in common stock would be reflected in the statement of stockholders' equity. Select one: True False

xxMikexx [17]

Answer:

The answer is true.

Explanation:

And increase or decrease in common stock or shareholders' equity is shown under statement of stockholders' equity.

It tells us the changes that happened from the beginning of the year till year ending.

It tells us how retained earnings decrease or increase, the dividend paid for the year, changes in common equity.

8 0

3 years ago

Jiminy Cricket Removal has a profit margin of 7.6%, total asset turnover of 1.73, and ROE of 17.2%. What is this firm s debt-equ

liubo4ka [24]

Answer:

The debt to equity ratio is 30.81%

Explanation:

The computation of the debt equity ratio is shown below:

ROE = Profit margin × Asset turnover × equity multiplier

17.2% = 7.6% × 1.73 × (1 + debt ÷ equity)

17.2 ÷ 13.148 = (1 + debt ÷ equity)

1.308184 = (1 + debt ÷ equity)

So, after solving this,

hence, The debt to equity ratio is 30.81%

We simply applied the Dupont analysis and the same is to be considered

4 0

3 years ago

Black Diamond Company produces snowboards. Each snowboard requires 2 pounds of carbon fiber. Management reports that 5,000 snowb

Nonamiya [84]

1.Based on the information given the production budget for the third quarter is 148,500.

2. Budgeted cost of direct material purchases is 4,425,000.

3. Budgeted Direct labor cost is $1,485,000.

4. Total factory overhead is $2,376,000.

1. Budgeted production

BLACK DIAMOND COMPANY

Production Budget (in units) Third Quarter

Budgeted units sales 150,000

Add: Budgeted ending inventory 3,500

Less: Budgeted beginning inventory (5,000)

Budgeted production 148,500

2. Direct material budget

BLACK DIAMOND COMPANY

Direct Materials Budget Third Quarter

Budgeted production 148,500 units

Materials requirement per unit 2

Materials needed for production 297,000

(148,500units×2)

Budgeted ending inventory 4,000

Total material requirements(lbs.) 301,000

(297,000+4,000)

Budgeted beginning inventory 6000

Direct Materials to be purchased (lbs.) 295,000

(301,000-6,000)

Materials price per pound 15.00per

Budgeted cost of direct material purchases 4,425,000

(295,000×15 per)

3. Direct labor budget

BLACK DIAMOND COMPANY

Direct labor Budget Third Quarter

Budgeted Production 148,500

Budgeted Direct labor hours 74,250

(148,500×0.5)

Budgeted Direct labor cost $1,485,000

(74,250×$20)

4. Factory overhead budget

BLACK DIAMOND COMPANY

Factory Overhead Budget Third Quarter

Variable overhead $594,000

(74,250×$8)

Add Fixed overhead $1,782,000

Total factory overhead $2,376,000

Learn more here:brainly.com/question/16381677

8 0

3 years ago

DogMart Company records depreciation for equipment. Depreciation for the period ending December 31 is $2,440 for office equipmen

Kisachek [45]

Explanation:

The two journal entries to record the depreciation is shown below:

On December 31

Depreciation expense - office equipment $2,440

To Accumulated depreciation - office equipment $2,440

(Being the depreciation expense is recorded)

On December 31

Depreciation expense - production equipment $6,230

To Accumulated depreciation - production equipment $6,230

(Being the depreciation expense is recorded)

3 0

4 years ago