Answer:
No effect
Explanation:
As with opening of petty cash fund, there is an exchange in the form of asset.
The free cash is now divided in two parts, cash and petty cash.
Both are assets and the closing balance of cash in balance sheet is aggregate of free cash and petty cash.
Therefore, there is no impact in the total assets as now free cash is petty cash which is later added to free cash.
Answer:
(a) Excess reserves = 200
(b) Monetary base (B) = 900
(c) Money multiplier = 10
Explanation:
Assuming that the required reserve ratio (missing in the question) is 0.1:
(a) Excess reserves = Reserves - Required reserves
Reserves = 400
Required reserves = Deposits x Required reserve ratio
= 2000 x 0.1
= 200
Hence, Excess reserves = 400 - 200
= 200
(b) Monetary base (B) = Reserves + Currency
= 400 + 500
= 900
(c) Money multiplier = 1 / Required reserve ratio
= 1 / 0.1
= 10
Answer
The answer and procedures of the exercise are attached in the following archives.
Step-by-step explanation:
You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.
Answer:
Profit margin
Explanation:
Profit margin = Net profits / Net sales
Company can earn insight into a company's earnings by looking at its sales strategy, pricing structure, and productivity improvements using net profit margin.
Answer: $230,000
Explanation:
Gross profit to be earned from project:
= Construction price - cost of construction
= 6,000,000 - 5,500,000
= $500,000
Percentage of costs incurred in 2017:
= 2,530,000 / 5,500,000 * 100%
= 46%
The Gross profit for 2017 is therefore:
= Percentage of cost incurred * total gross profit
= 46% * 500,000
= $230,000
