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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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Charlie Corporation is considering buying a new donut maker. This machine will replace an old donut maker that still has a usefu

Doss [256]

Answer:

$2,700

Explanation:

Data provided

New machine cost = $3,800

Old machine cost = $4,300

Additional donuts = 22,000

Contribution margin per unit = $0.10

The computation of Incremental annual net cash flows is as shown below:-

Incremental annual net cash flows = Operating cost saving per year + Additional contribution Margin provided by new donuts maker

= ($4,300 - $3,800) + (22,000 × $0.10)

= $500 + $2,200

= $2,700

Therefore for computing the incremental annual net cash flows we simply applied the above formula.

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3 years ago

In order for the United States to have a treaty with a foreign country the

iren2701 [21]

The people of the united states had to travel to them and sign the treaty

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4 years ago

Read 2 more answers

A company's 2019 financial records included the following: Jan. 1, 2019 Dec. 31, 2019 Accounts Receivable $100,000 $80,000 Inven

Anna007 [38]

Answer:

The amount of net cash from operating activities for 2019 is $210,000.

Explanation:

Cash flows from operating activities refers to the section of the statement of cash flow that reveal the sources and utilization of cash got from ongoing normal business activities of a company in particular period.

Items that usually found under cash flows from operating activities are net income from the income statement, adjustments to reconcile net income, and changes in working capital.

The amount of net cash from operating activities for 2019 can be determined by preparing a statement of cash flow for operating activities only as follows:

Statement of cash flows

(Operating activities section only)

For the year ended 2019

Details Amount ($) 

Net income 155,000

Adjustment to reconcile net income:

Depreciation expense 25,000

Changes in working capital:

(Increase) decrease in current assets

Accounts Receivable ($80,000 - $100,000) 20,000

Inventory ($70,000 - $50,000) (20,000)

Prepaid Expenses ($75,000 - $100,000) 25,000

Increase (decrease) in current liabilities

Accounts Payable ($110,000 - $100,000) 10,000

Deferred Revenue ($70,000 - $85,000) (15,000)

Net cash from operating activities  210,000 

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4 years ago

If a hotel or restaurant is franchised, the property is mostly commonly owned ________________________. Select one: A. by the ho

Debora [2.8K]

C. by the local franchisee.

If a hotel or restaurant is franchised, the property is most commonly owned by the local franchise.

<h3>What is a franchise?</h3>

A franchise (or franchising) is a technique of selling goods or services that involves a franchisor who creates the brand's trade name and business model and a franchisee who pays a royalty and frequently an upfront fee to have the right to use the franchisor's name and system. The term franchise technically refers to the agreement that binds the two parties, but it is more frequently used to describe the business that the franchisee runs. The process of developing and disseminating a brand and franchise network is known as franchising.

Learn more about a franchise here:

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2 years ago

The four conditions (mutual exclusion, hold and wait, no preemption and circular wait) are necessary for a resource deadlock to

Evgen [1.6K]

Explanation:

The conditions sufficient for a resource deadlock to occur is when a deadlock will prevail for process A, B, and C when two resources R and S; if only one instance of each resources is allowed.

Solution

Deadlock conditions

A deadlock is a situation where two or more processes request for same critical resource at the same time.

The mutual exclusion applies a restriction to a resource when the resource is used by any process, it should become unavailable for the other resources

The hold and wait allocations explains that any process which is allocate resources must hold them; till all needed resources are nor sure.

In the meantime, if any other processes need a resource which is held by another process, then the latter will release the resource to prevent deadlock.

No pre-emption states that the operating system can grant access to resources to another process while it is in use by another process; depending on the priority , to prevent deadlock.

Circular wait should not be implemented so that resources being requested by process are allocated when they get free.

Now,

Three processes A, B, and C functions on a system, having two distinct resources R and S.

The resource R has one instant active while resource S has two instances available.

The instance of R is allocated to a process A after request. first instance of resource S is allocated to process B, and second instance of resource S is allocated to process C.

When a request is placed by process B for resource R, then the resource is not available for execution. the process A request for resource S which is used by both C and B.

All the four conditions prevail in this situation; yet deadlock does not occur.

The resource S is released by process C and is allocated to process A. when process A finishes, it releases resources and resources R is allocate d to process B.

Hence all three processes end without a deadlock.

However, the deadlock will prevail for process A, B, and C when two resources R and S; if only one instance of each resources is allowed.

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3 years ago