Cash Flow:

Which of the following is NOT an example of how a bank can make money?

KiRa [710]

Answer:

I think it's #4 participating in a bank run, because loaning money u give money away but they still have to give that money back by paying the loan little by little.

Explanation:

3 0

3 years ago

Suppose an assistant professor of economics is earning a salary of $75,000 per year. One day she quits her job, sells $100,000 w

Akimi4 [234]

Answer:

Economic profit $10,000

Explanation:

Income earned as an assistant professor = Salary + Interest on bonds = 75000 + 5% on 100,000 = 75000 + 5000

Income earned as an assistant professor = $80,000

Income from the bookstrore = $90,000

In calculating economic profit, opportunity costs are deducted from revenues earned.

Economic profit = $90,000 - $80,000 = $10,000

4 0

3 years ago

Stone Company has beginning equity of $1,200,000, net income of $200,000, dividends of $120,000 and investments by owners in exc

meriva

Answer:

The correct answer is D. $1,320,000 .

Explanation:

In this case, it should be considered that the Stone Company is just beginning to operate, so the capital at the end of the period is made up of the following:

Initial Capital: $ 1,200,000

Dividends: $ 120,000

TOTAL = $ 1,320,000

Net income is not part of the measurement of capital, since information on expenses must be available to calculate the profit or loss for the period. For its part, investments in shares are considered a current asset and do not enter into this calculation.

4 0

3 years ago

Monumental, Inc. contracts with Champion Builders to erect a three-story office building on a parcel of land it has purchased. B

Elza [17]

Answer:

A) True

Explanation:

Monumental can discharge the contract by frustration. In order for a contract to be discharged by frustration, four conditions have to occur:

An unforeseeable event must occur: In this case the zoning changes were unforeseeable.
No party is at fault: the zoning board made the changes to the zoning of the land.
Performance is impossible: there is no reason why an office building should be built in a residential only area.
The result is radically different than expected: neither Monumental or Champion Builders expected a zoning change to occur.

7 0

3 years ago

The Cutting Department of Sheridan Company has the following production and cost data for July.

alina1380 [7]

Answer:

1. Materials Conversion Costs

Total equivalent units of production 17,200 15,800

2. Cost per Equivalent Unit $ 4.05 $ 2.6

Explanation:

Cutting Department

Weighted-Average Method

1. Equivalent Units

Particulars Units % of Completion Equivalent Units

Materials Conversion Materials Conversion

Transferred Out 13,700 100 100 13,700 13,700

Ending Inventory 3500 100 60 3500 2100

Total Equivalent Units 17,200 15,800

The Ending Inventory units are 3500 which are not yet complete.

Materials Conversion Costs

Total equivalent units of production 17,200 15,800

2. Cost Per Equivalent Units

Materials Conversion

Cost Added 69,660 18,480 + 22,600

Total Costs 69,660 41,080

Equivalent Units 17,200 15,800

Cost per Equivalent Unit 69,660 / 17,200 41,080/ 15,800

$ 4.05 $ 2.6

Cost of Ending Work In Process $ 19635

Materials = 3500 * $ 4.05= $ 14175

Conversion = 2100 * $ 2.6= $ 5460

We multiply the equivalent number of units with the cost per unit to find the cost.

Cost Of Units Transferred Out = $ 91,105

Materials = 13,700 * $ 4.05= $ 55,485

Conversion = 13,700 * $ 2.6 = $ 35620

B. A Cost Reconciliation Report

Materials Conversion

Ending WIP $ 14175 $ 5460

Transferred Out $ 55,485 $ 35620

Total $ 69660 41080

These calculated costs reconcile with the costs given in the above data.

Materials Conversion

Cost Added 69,660 18,480 + 22,600

Total Costs 69,660 41,080

These costs reconcile with the given costs.

5 0

3 years ago