All categories

3 years ago

The balance sheet below is for the First Federal Bank. Assume the required reserve ratio is 20 percent.

Business

1 answer:

lord [1]3 years ago

3 0

Answer:

The answer is option (3) $200,000

Explanation:

Solution

Given that:

The reserve ratio =20%

The Required reserves = 300000*20/100

=60000

The excess reserves = 100000-60000

=$40000

Thus

The Money multiplier = 1/0.20

= 5

Therefore, maximum amount by which loans could be expanded = 40000*5

= $200000

You might be interested in

Why should all small business owners develop business plans even if they are not required to obtain financing?

NISA [10]

A business plan would help small business owners to know how to operate the business, achieve goals and what activities need to be conducted in case they missed anything out. It helps a business to plan out and conduct business operations.

4 0

3 years ago

The HRM specialists at A&C Company took the opportunity to increase productivity and decrease manual data analysis by using

FrozenT [24]

Answer:

<u>Skills inventory</u>

Explanation:

Skills inventory refers to the skills stored in an individual i.e one's capabilities and skills.

Skills inventory assessment makes an employer identify how well an employee would be able to meet the skills required at the job and how those skills would aid in the achievement of organizational goals.

It refers to assessing and understanding the competencies of the current staff by an organization.

For the above purpose, businesses may use commercial software or database management systems (DBMS).

In the given case, the HRM specialists exercised the option of using computer network in addition to database management system, to develop a skills inventory , post which, the company is able to successfully identify specific organizational skills.

6 0

3 years ago

The term _____ is defined as the activity, set of institutions, and processes for creating, communicating, delivering, and excha

lubasha [3.4K]

Answer:

Marketing

Explanation:

There are various explanations for the term Marketing. It is essentially a group of activities aimed at creating a valuable customer relationship. Unlike traditional approaches which planned their activities based on what the customers would buy, the Marketing approach takes decisions based on wht the customer wants/needs. It places customer at the center and all the activities revolve around them.

7 0

3 years ago

On October 29, 2016, Lobo Co. began operations by purchasing razors for resale. Lobo uses the perpetual inventory method. The ra

EleoNora [17]

Answer:

Nov 11

Dr Cash 7,875

Cr To Sale 7,875

Nov. 11

Dr Cost of Goods Sold 2,100

Cr To Inventory 2,100

Nov. 30

Dr Warranty Expenses 630

Cr To Warranty Liability 630

Dec. 9

Dr Warranty Liability 300

Cr To Inventory 300

Dec. 16

Dr Cash 16,500

Cr To Sales 16,500

Dec. 16

Dr Cost of Goods Sold 4,400

Cr To Inventory 4,400

Dec. 29

Dr Warranty Liability 600

Cr To Inventory 600

Dec. 31

Dr Warranty Expenses 1,320

Cr To Warranty Liability 1,320

1.b Journal Entries for 2017

Jan 5

Dr Cash 11,250

Cr To Sales 11,250

Jan 5

Dr Cost of goods sold 3,000

Cr To Inventory 3,000

Jan 17

Dr Warranty Liability 1,000

Cr To Inventory 1,000

Jan 31

Dr Warranty Expenses 900

Cr To Warranty Liability 900

2)a. Warranty Expenses= $630

2b. Warranty Expenses= $1,320

3). Warranty Expenses= $900

4). Estimated Warranty Liability Account $1,050

5). Estimated Warranty liability account $900

Explanation:

Preparation of the Journal entries for Lobo Co

Journal Entries for 2016 for Lobo Co

Nov 11

Dr Cash 7,875

Cr To Sale 7,875

Nov. 11

Dr Cost of Goods Sold 2,100

Cr To Inventory (20*$105) 2,100

Nov. 30

Dr Warranty Expenses 630

($7,875*8%)

Cr To Warranty Liability 630

Dec. 9

Dr Warranty Liability 300

(15*$20)

Cr To Inventory 300

Dec. 16

Dr Cash 16,500

Cr To Sales 16,500

Dec. 16

Dr Cost of Goods Sold 4,400

Cr To Inventory 4,400

(220 * $20)

Dec. 29

Dr Warranty Liability 600

(30*$20)

Cr To Inventory 600

Dec. 31

Dr Warranty Expenses 1,320

($16,500*8%)

Cr To Warranty Liability 1,320

1.b Journal Entries for 2017

Jan 5

Dr Cash 11,250

Cr To Sales 11,250

Jan 5

Dr Cost of goods sold 3,000

(150*$15)

Cr To Inventory 3,000

Jan 17

Dr Warranty Liability 1,000

(50*$20)

Cr To Inventory 1,000

Jan 31

Dr Warranty Expenses 900

(11,250*8%)

Cr To Warranty Liability 900

2)a. Warranty Expenses for Nov. 2016

Warranty Expenses= $7,875*8%

Warranty Expenses= $630

2b. Warranty Expenses for Dec. 2016

Warranty Expenses= $16500*8%

Warranty Expenses= $1,320

3). Warranty Expenses for Jan. 2017

Warranty Expenses= $11,250*8%

Warranty Expenses= $900

4). Estimated Warranty Liability Account as on Dec. 31, 2016

Estimated Warranty Liability Account= $630 + $1,320 - $300 - $600

Estimated Warranty Liability Account= $1950- $900

Estimated Warranty Liability Account= $1,050

5). Estimated Warranty liability account as on Jan. 31, 2017

Estimated Warranty liability account = $1,050 + $900 - $1,050

Estimated Warranty liability account= $900

7 0

3 years ago

Mike wants to purchase an $11,350 car with a loan from a credit union that requires a 20% down payment. what amount will Mike bo

djyliett [7]

He will borrow 80% of the cost of the car.
80/100*11350= <span>$ 9080</span>

4 0

3 years ago