Solution :
We calculate the advances form the customer to be reported as the current liability as on Dec. 31, 2009 in the balance sheet as follows :
<u> Particulars </u> <u> Amount ($)</u>
Customer advances the balance Dec 31, 2008 110
Add : advances that is received with 2009 orders is 195
Less : advances applicable to the orders in 2009 -180
Less : advances from orders that are canceled in 2009 <u> -45 </u>
Advances from the customers liability Dec. 31, 2009 80
Therefore, the advance from the customer to be reported in the balance sheet as the current liability is $80.
Answer:
The lending ability will increase by $2.25 billion.
Explanation:
The reserve requirement is given at 25%.
If federal reserve bank buys $3 billion in government securities, the total reserve will increase by $3 billion.
The excess reserve will be
=Increase in total reserve-required reserve
=$3 billion-25% of $3
=$(3 billion- .25*3) billion
=$(3-0.75) billion
=$2.25 billion
E. Increases; unemployment rate will increase
Answer:
$12,800
Explanation:
This can be calculated as follows:
November sales in unit = 64,000
Since Wisdom Toys requires that 20% of the next month’s sales in units are on hand at the end of each month, we have:
Number of video games in inventory at October 31 = November sales in unit * 20% = 64,000 * 20% = 12,800
Therefore, 12,800 video games in inventory at October 31.
Answer:
$124,440
Explanation:
Given a monthly principal and interest payment of $679, over the 30 year period, Naomi would have paid back
$679 * 30 year * 12 months in a year
= $244,440
With a loan amount of @120,000, the interest portion of the total repayment is therefore = total repayment less the loan amount
= $244,440 - $120000
= $124,440.
