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3 years ago

Q. 1. How does Financial System Coordinate Saving and Investment? Explain in detail.

Business

1 answer:

IceJOKER [234]3 years ago

3 0

Answer:

Banks play a very important role in the economy

Explanation:

The role of financial institutions is to coordinated investment and savings in the economy. The financial system comprises of numerous institutions in the economy that help to coordinate one individual's saving with another person's investment. It is a system that arranges the economy's saving and investment – it concerns choices we make today that will influence our lives in future.

Banks are financial institutions which play a pivotal role by playing a critical role in the monetary framework and the economy. As a key part of the financial system, banks allocate assets from savers to borrowers in a proficient way. These financial administrations of banks help to make the economy efficient by generating money in the country.

The T account is a graphical representation of general ledger account it is a crucial method that indicates how one side of an accounting exchange is reflected in another record. T-accounts are also used in income statements.

Assets Liabilities Equity

Debit Credit Debit Credit Debit Credit

+ - - + - +

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On January 2, 2009, L Co. issued at par $20,000 of 4% bonds convertible in total into 1,000 shares of L's common stock. No bonds

MrRissso [65]

Answer:

The correct answer is $1.2 per share.

Explanation:

According to the scenario, the computation of the given data are as follows:

Interest expense of Bonds = $20,000 × 4% = $800

Now, Interest expense of Bond, After tax = $800 × ( 1 - 50%) = $800 × 0.50

= $400

So, we can calculate the diluted earning by using following formula:

Diluted Earning = (Net income + Interest expense after tax) ÷ Total outstanding shares outstanding

Where, Total outstanding shares = 1,000 shares + 1,000 shares = 2,000 shares

By putting the value, we get

Diluted earning = ($2000 + $400 ) ÷ 2,000

= $1.2 per share

4 0

3 years ago

Perform a horizontal analysis providing both the amount and percentage change. (Round Percentage answers to 1 decimal place. Dec

True [87]

Answer:

Find attached

Explanation:

Horizontal or trend analysis involves is a financial statement analysis technique that shows the percentage change or dollar change in a corresponding financial statement's item.

For example, the change in the fixed assets by a way of increase or decrease compared to last year's financial statements.

Formula:

change in a particular line item=(current year amount/previous year)-1

Download xlsx

3 0

3 years ago

A financial manager is interested in the cash inflows and outflows of a firm, rather than the accounting data, in order to __

goldenfox [79]

I think the best would be C ensure timely payments of taxes

7 0

3 years ago

Heath Food Corporation’s bonds have 7 years remaining to maturity. The bonds have a face value of $1,000 and a yield to maturity

joja [24]

Answer:

8.55%

Explanation:

For computing the current yield first we have to determine the present value by applying the present value formula which is shown below:

Given that,

Future value = $1,000

Rate of interest = 8%

NPER = 7 years

PMT = $1,000 × 9% = $90

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

After solving this, the present value is $1,052.06

Now the current yield is

= PMT ÷ PV

= $90 ÷ $1,052.06

= 8.55%

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3 years ago

Without _____, no company can survive over the long run.

yuradex [85]

Hi there! Thanks for asking a question here on Brainly.

<span>Without innovation, no company can survive over the long run. Innovations provide new ideas, methods, and advances to a company.

Answer: Letter D </span>✅ <span>

</span>Hope that helps! ★ If you have further questions about this question or need more help, feel free to comment below or post another question and send the link to me. -UnicornFudge aka Qamar

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3 years ago