Answer:
$3.68 million
Explanation:
Reserve Ratio = 8%
Reserves are currently = $25 million
Amount of deposits = $ 312.5 million
Deposit outflow = $4 million
Remaining Deposits = Amount of deposits - Deposit outflow
= $ 312.5 million - $4 million
= $308.5 million
Current Required Reserve after outflow of deposits(CR):
= $25 million - $4 million
= $21 million
Therefore,
Shortage of Reserve = CR - (Remaining Deposits × Reserve Ratio)
= $21 - ($308.5 × 0.08)
= $21 - $24.68
= -($3.68)
Therefore, the reserve shortage created by a deposit outflow of $4 million is $3.68 million
Answer:
Option B The company made large investments in fixed assets.
Explanation:
The reason is that the reaminder of the options talk about the increase of the cash not a decrease in cash amount. If the company cuts dividend then it is retaining cash, if the company is raising finance then it is increasing cash or if the company is selling its division or assets then it is raising cash.
These things constitutes to increase in cash flow.
The decrease is cash occurs when the company invests (cash outflow). So the company is making cash outflows which means cash level will decrease.
Internal growth rate = Net income / Total Assets
Net income = $68,200
Total assets = $687,300
Internal growth rate
= $68,200 / $687,300
= 0.099228 x 100%
= 9.92 %
Fried Donuts has an internal growth rate of 9.92%.
Answer: Use vivid words.
Label descriptive modifiers.
Position important ideas first or last in a sentence.
Explanation:
The stylistic devices that can be used to achieve emphasis include using of vivid words, labelling descriptive modifiers and also by positioning the important ideas as the first or last in a sentence.
For the readers to be able to picture ones ideas, it is appropriate to use vivid words and also the readers will notice the important ideas when they're placed in either the first or the last part.
Using general terms
