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3 years ago

Compensating balances

Business

1 answer:

Airida [17]3 years ago

8 0

Answer:

The correct answer is D

Explanation:

Compensating balance is the balance which is to be minimum amount that is to maintained or kept in the bank account, so that could be used to offset the cost incurred by the bank for setting up the loan.

It is that balance which is not available for the company to use and might be needed to disclose in the notes of the borrower in the financial statements.

So, it is a specific kind of collateral, allow bank to monitor payment practice of firms and require to have a minimum amount that borrower need to keep in the checking account.

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Miller Company’s contribution format income statement for the most recent month is shown below: Total Per Unit Sales (20,000 uni

Sloan [31]

Answer:

Answers are 1. $95.000 2. $42.500 3. $ 50.000 4. $59.600

Explanation:

In each case you have to replace the data with the given information

1 If unit sales increase 15%

Units price Total

Revenue 20,000.00 17.25 345,000.00

Variable Man 20,000.00 9.00 (180,000.00)

Contribution margin 20,000.00 8.25 165,000.00

Fixed expenses 20,000.00 3.50 (70,000.00)

Net income 95,000.00

2 If price decreases by $1.5 and units sold increases by 25%

Units price Total

Revenue 25,000.00 13.50 337,500.00

Variable Man 25,000.00 9.00 (225,000.00)

Contribution margin 25,000.00 4.50 112,500.00

Fixed expenses 25,000.00 2.80 (70,000.00)

Net income 42,500.00

3 If price increases by $1.5 and fixed expenses by $20.000

Units price Total

Revenue 20,000.00 16.50 330,000.00

Variable Man 20,000.00 9.00 (180,000.00)

Contribution margin 20,000.00 7.50 150,000.00

Fixed expenses 20,000.00 5.00 (100,000.00)

Net income 50,000.00

4 Units price Total

Revenue 18,000.00 16.80 302,400.00

Variable Man 18,000.00 9.60 (172,800.00)

Contribution margin 18,000.00 7.20 129,600.00

Fixed expenses 18,000.00 3.89 (70,000.00)

Net income 59,600.00

5 0

4 years ago

You are a newspaper publisher. You are in the middle of a one-year factory rental contract that requires you to pay $500,000 per

professor190 [17]

If sales fall by 20 % from 1,000,000 papers per month to 800,000 papers per month, the AFC per paper will <u>rise </u>from <u>$1.5</u> per paper to <u>$1.875</u> per paper.

Since the marginal printing cost is $0.35 per paper and the marginal delivary cost is $0.10 per paper.It will not be affected with a decrease in the sales of paper per month

If the sales decrease from 1,000,000 to 800,000 then for break-even point, the minimum price charged will increase from $1.95 per paper to $2.325 per paper

<h3>How to calculate the value?</h3>

Total fixed cost = 500,000+ 1,000,000

=$ 1,500,000 per month

If the sales of paper falls from 1,000,000 per month to 800,000 paper per month.

AFC= total cost / quantity of paper

if salesis 1000,000

AFC=1,500,000/1,000,000

=$1.5 per paper

If sales is 800,000

AFC=1,500,000/800,000

=$1.875 per paper

Learn more about sales on:

brainly.com/question/25586322

#SPJ1

4 0

1 year ago

Porter Corporation owns all 40,000 shares of the common stock of Street, Inc. Porter has 80,000 shares of its own common stock o

damaskus [11]

Answer: 5.05 per share

Explanation:

.Porter. Street

$,000 $,000

Net income. 264. 236

Less amortization 0. 12

Less Interest. 48. 36

Total. 216. 188

*=. 216+188= 404/80000shasres

=5.05

The parents company Peter fully owns all the share of street which means it takes the whole.profit of street, The consolidation sechdule only takes cognizance of the parents company shares in calculating earning per share and the subsidiary share which is Street it's treated as an investment. The convertible shares are also not taking into consideration since they have not been convert.

6 0

3 years ago

Biometrics (retinal scans, fingerprints, and the like) are mainly used for ____ by large security-minded entities such as bankin

Novosadov [1.4K]

Answer:

Authentication

Explanation:

Authentication involves the process of verifying the identity of a device or person. Authentication is necessary in order to allow only the authorized person have access to a place, a device or a thing.

Authentication types includes;

Continuous authentication
Digital authentication
Project authentication

7 0

4 years ago

Which of the following is true of price elasticity of demand?

kiruha [24]

Answer: Option c

Explanation: Elasticity is an economic term that describes a transition in consumer and vendor actions in response to a price change for a commodity. How the market for the commodity responds to a price change dictates the elasticity or in-elasticity of the demand for that product.

An inelastic commodity is the one that even after a price change, buyers continue to buy. A good or service's elasticity may change depending on the number of close alternatives accessible, its overall cost, and the length of time that has passed since the increase in price occurred.

Thus even if there is a slight change in demand due to change in price then the commodity is said to be elastic.

5 0

4 years ago