In a commercial bank's t-account, reserves and outstanding loans are recorded as assets.
In economic accounting, "reserve" usually has a credit balance and may talk over with part of shareholders' fairness, a liability for envisioned claims, or contra-asset for uncollectible debts. A reserve can seem in any part of shareholders' fairness besides for contributed or simple proportion capital.
Reserves are a part of income or gain that has been allotted for a selected reason. Reserves are usually installed to shop for fixed property, pay bonuses, pay an anticipated prison settlement, pay for upkeep & protection and pay off debt.
Reserves – additionally called retained income – are portions of a commercial enterprise's profits that have been set aside to strengthen the enterprise's economic function.
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Explanation:
However, there is a more important reason to conserve fossil fuels, and that's to help heal the environment. Burning petroleum, coal and natural gas fills the air with harmful pollutants, including nitrogen oxides, sulfur dioxide, carbon dioxide, ozone and a host of hydrocarbons.
Answer:
the present value of the stock is 26.57
This will be the amount willing to pay per share today.
Explanation:
We have to calculate the present value of the future dividend
![\left[\begin{array}{ccc}Year&Cashflow&Present \: Value\\0&6&\\1&7&6.3636\\2&8&6.6116\\3&9&6.7618\\4&10&6.8301\\total&9.7&26.5671\\\end{array}\right]](https://tex.z-dn.net/?f=%5Cleft%5B%5Cbegin%7Barray%7D%7Bccc%7DYear%26Cashflow%26Present%20%5C%3A%20Value%5C%5C0%266%26%5C%5C1%267%266.3636%5C%5C2%268%266.6116%5C%5C3%269%266.7618%5C%5C4%2610%266.8301%5C%5Ctotal%269.7%2626.5671%5C%5C%5Cend%7Barray%7D%5Cright%5D)
We will put each dividend and their year into the formula and solve for PV
First Year
Second Year
Third Year
Fourth Year
The value of the stock is the sum of the present value of their dividend
The sum for this firm is 26.5671 = 26.57
B. Car payments must become part of the budget.
