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kotegsom [21]
3 years ago
10

When savers deposit funds into banks, which then loan these funds to borrowers, it is called ________ finance.

Business
1 answer:
Vilka [71]3 years ago
3 0

Answer:  

Indirect finance

Explanation:  

Indirect financing is when lenders use indirect methods to raise capital from the capital market, such as via a financial institution. This is distinct from direct borrowing in which the issuer selling assets exclusively on the marketplace has a direct relationship to the financial markets.

In the situation of indirect funding, in the way of lower tax rates, the government gives advantage as a means to defend a specific interest instead of raising and reallocating tax income (that would be viewed by a government as a clear funding technique).

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Preble Company manufactures one product. Its variable manufacturing overhead is applied to production based on direct labor-hour
nikklg [1K]

<u>Explanation:</u>

1. Calculation of labor spending variance for the month of march

Labor spending variance = (Actual rate x actual hours)- (Standard rate x Standard hours)

=(13 x 63000) - (12 x (26000 x 3))

=-1,38,600

Labor spending variance for the month of March is $138600

2.Calculation of variable manufacturing overhead planning cost

Variable manufacturing overhead planning cost= (Planning budget units x required hours x cost per hour)

=(21000 x 3 x7)

=441,000

Variable manufacturing overhead planning cost is $441,000

3. Calculation of Variable manufacturing overhead cost

Variable manufacturing overhead  cost= (Actual units x required hours x cost per hour)

=(26600 x 3 x7)

=$558,600

Variable manufacturing overhead  cost is $558,600

4. Calculation of Variable overhead rate variance

Variable overhead rate variance= Actual hours ( actual rate - standard rate)

=63000((510930/63000)-8)

=63000(8.11-8)

=63000(0.11)

=6930

Variable overhead rate variance is =6930

3 0
4 years ago
The accountant at Coronado Company is figuring out the difference in income taxes the company will pay depending on the choice o
Anna11 [10]

Answer:

The difference in tax to be paid between the two methods is $455

Explanation:

In this question, we are asked to calculate the difference in tax for the LIFO and FIFO method.

The matter of importance here is that the tax rate is 35%. We proceed as follows:

For the FIFO income, the tax rate is 35% of 8,600 = 35/100 * 8600 = $3010

For the LIFO method, the tax rate is 35% of $7,300 = 35/100 * 7,300 = $2,555

The difference in tax that would be paid between the two methods is 3010-2555 = $455

7 0
3 years ago
Spencer Chemical Corporation produces an oil-based chemical product which it sells to paint manufacturers. In 2019, the company
Snowcat [4.5K]

Answer:

Total incremental net income = $28,000

Incremental per gallon increase in net income = $0.70 per unit

Explanation:

a. The preparation of incremental statement to find out the increase in net income

Total production                                  $140,000

Less:

Incremental cost

Direct material              $68,000

($1.70 × 40,000 gallons)

Direct labor                  $24,000

($0.60 × 40,000 gallons)

Variable manufacturing

overhead                     $20,000

($0.50 × 40,000 gallons)

Total incremental cost                      ($112,000)

Total incremental net income          $28,000

b. Incremental per gallon increase in net income = Total incremental net income ÷ Total quantity

= $28,000 ÷ 40,000 gallons

= $0.70 per unit

Therefore the total incremental net income is $28,000 and incremental per gallon increase in net income is $0.70 per unit.

5 0
3 years ago
HELP ME PLEASE !!!
Alecsey [184]

Answer:

a. financial records can be searched more easily

Explanation:

Computer technology has aided in the automation and integration of an organization's financial records in a single system. A business's financial data relating to several financial years are accessible from a single computer. Computer technology has made it easy to collect, analyze, report, and interpret financial records.

Through computer technology, financial records are organized and stored in a manner that is easy to retrieve. It takes very little time to access the required financial information as long as it was labeled correctly and stored.

3 0
3 years ago
Carla Vista Company purchases Sandhill Company for $2470000 cash on January 1, 2021. The book value of Sandhill Company’s net as
Nady [450]

Answer: $214000

Explanation:

The amount of goodwill that should be recognized by Carla Vista Company when recording the purchase of Sandhill Company will go thus:

Book value of net assets = $1923000

Add: Excess fair value of tangible asset = $190500

Add: Excess fair value of intangible assets = $142500

Fair value of net assets = $1923000 + $190500 + $142500 = $2256000

Therefore, Goodwill will be:

=Cash paid for purchase - Fair value of net assets

= $2470000 - $2256000

= $214000

3 0
3 years ago
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