Answer:
Account name statement(1) type of account(2)
Accounts payable BS CL
Accounts receivable BS CA
Accruals IS and BS income and SE
Accumulated amortization BS FA
administrative expenses IS E
Buildings BS FA
Cash BS CA
Common shares BS SE
Cost of goods sold IS E
Amortization BS E
Equipment BS F ASSET
General expenses IS E
Intrest expenses IS E
Account name Statement(1) type of account(2)
Inventories BS CA
Land BS FA
long term debts BS CL
Machinery BS FA
marketable securities BS CA
Line of credit BS LTD
operating expense IS E
Preferred shares BS SE
preferred share dividends BS SE
retained earnings BS R
Sales revenue IS R
Selling expense IS E
Taxes IS E
Vehicle BS FA
Answer and Explanation:
a. The completion of the following table to reflect any changes in First Main Street Bank's T-account is shown below:-
<u>First Main Street Bank's Balance Sheet
</u>
<u>Assets Amount Liabilities Amount</u>
Reserves $750,000 Checkable Deposits $750,000
b. The completion of the following table to show the effect of a new deposit on excess and required reserves is shown below:-
<u>Amount deposited</u> Change in excess Change in required
<u>reserves</u> <u>reserves</u>
$750,000 $600,000 $150,000
($750,000 - $150,000) ($750,000 × 20%)
Answer:
3.A
4.A
Explanation:
Hope both help you. Have a great day
Answer: $687.10
Explanation:
The value of a bond is the present value of the bond's coupon payments plus the present value of the bond's par value at maturity.
First convert terms to semi-annual periods as the coupon rate is semi annual:
Coupon payment = (1,000 * 8.75%) / 2 = $43.75
Required return = 13% / 2 = 6.5%
Number of periods = 25 * 2 = 50 semi annual periods
The coupon payment is an annuity so the value of the bond is:
= Present value of annuity + Present value of par
= (43.75 * ( 1 - (1 + 6.5%) ⁻⁵⁰) / 6.5%) + 1,000 / ( 1 + 6.5%)⁵⁰
= $687.10
Answer:
a-1. 55,620 units
a-2. 9.34
Explanation:
a-1. The accounting break-even point is calculated by;
= (Fixed costs + Depreciation) / (Sales - Variable costs)
Depreciation = 714,400/8 = $89,300
Accounting breakeven = (745,000 + 89,300) / (51 - 36)
= 55,620 units
a-2. Degree of Operating Leverage
= 1 + (Fixed Costs/ Operating Cashflow)
= 1 + (745,000 / 89,300)
= 9.34
<em>At this point, the only given Operating cashflow figure is Depreciation. </em>