Answer:
d. $8,000
Explanation:
Reserve requirement = 25% = 0.25
The money multiplier = 1 /Required reserve
The money multiplier = 1/0.25
The money multiplier = 4
The initial deposits = $2,000
The maximum possible expansion of deposits = Initial deposits * The money multiplier = $2,000 * 4 = $8,000. Thus, the maximum expansion of the money supply possible from the original deposit is $8,000
If the midlands pencil corporation has issued several different debt securities, an investor would expect the lowest income stream from <u>convertible debentures.</u>
Convertible bonds have many positive attributes for investors, but the main drawback is that investors accept lower interest rates in exchange for these benefits.
Convertible debentures are fixed rate debentures that pay interest but can be converted into a specified number of ordinary shares or shares. Conversion of a bond into equity may occur at certain times during the life of the bond and is generally at the discretion of the bondholder.
Due to this logic, a convertible bond allows the issuer to indirectly sell its common stock at a price higher than its current price. From a buyer's perspective, convertible bonds are attractive because they offer the opportunity to capture the potentially high yields associated with equities, but also the security of bonds.
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<span>The two basic sources of stockholders' equity are paid-in capital and retained earnings. Stockholders' equity is represented by the equity stake that is held on the books by a firm's equity investors. Paid-in capital is the amount of money (capital) that is paid in by the </span>investors when common or preferred stock being issued. Retained earnings are shown as a percentage of the net earnings that are not paid out as dividends but kept in the corny to be reinvested.
Cash transactions are more likely to be recorded incorrectly than other types of transactions since they happen more frequently.
<h3>What do you name a transaction?</h3>
A transaction is what? An executed contract between such a seller and a buyer to trade goods, services, or capital instruments in exchange for money is known as a transaction. The phrase is also frequently used in business accounting. In corporate bookkeeping, this easy notion could be difficult to apply.
<h3>Do you mean by transaction "payment"?</h3>
A transaction is the outcome of a contract between such a seller and a buyer. In a trade, the seller exchanges cash for the provision of goods, services, or other financial assets. A company's lifeblood is its financial activities, which enable them to produce a consistent revenue stream and manage cash flow.
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Answer:
$5,000= ending inventory
Explanation:
Giving the following information:
Gross margin is normally 40% of sales.
Sales= $25,000
beginning inventory= $2,500
purchases= $17,500
First, we need to determine the cost of goods sold:
COGS= 25,000*0.6= 15,000
Now, using the following formula, we can calculate the ending inventory:
COGS= beginning inventory + cost of goods purchased - ending inventory
15,000= 2,500 + 17,500 - ending inventory
5,000= ending inventory
