Answer: The bank reserves part of the money and uses the rest to make loans to other people who need them.
Explanation: money doesn't just sit in the banks. the money will still there but some will be used by the banks for other loans and interests.
(i also took the test so this is most likely correct)
hope it goes well!
Answer:
A
Explanation:
Hope this helps you. sorry if wrong.
Answer:
$510,560
Explanation:
AFN = (A/S) x (Δ Sales) - (L/S) x (Δ Sales) - (PM x FS x (1-d))
- A = assets = $4,000,000
- S = sales = $7,600,000
- L = liabilities that vary according to sales level = $450,000 + $450,000 = $900,000
- Δ Sales = change in sales = $9,120,000 - $7,600,000 = $1,520,000
- PM = profit margin = 4%
- FS = forecasted sales = $9,120,000
- d = payout ratio = 70%
AFN = ($4,000,000/$7,600,000) x ($1,520,000) - ($900,000/$7,600,000) x ($1,520,000) - (4% x $9,120,000 x (1 - 70%)) = $800,000 - $180,000 - $109,440 = $510,560
Answer: $13,063,000
Explanation:
The book value of Klingon's assets today will be:
Net working capital = $223,000
Add: Current liabilities = $840,000
Current assets = $1,063,000
Add: Net fixed asset = $12,000,000
Book value of assets = $13,063,000
Therefore, the book value of the assets will be $13,063,000.