1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
GenaCL600 [577]
3 years ago
12

The First National Bank of Nelsonville has no excess reserves when a new deposit of $10,000 is made. The required reserve ratio

for all banks is 5 percent. How much is the largest possible increase in checking account balances throughout the entire banking system
Business
1 answer:
victus00 [196]3 years ago
8 0

Answer:

$950

Explanation:

Reserve ratio is defined as the percentage amount of deposit that a bank is instructed by the governing central bank to keep as cash reserve. This is used to control the money supply in the economy as the the check - able amount that are subjected to withdrawal is limited to the funds available after the reserve ratio has been considered.

Workings

New deposit - $10,000

Required reserve ratio - 5%

No existing excess ratio as at the time of deposit.

Reserve ratio - 5%*10000 = 50

Increase in checking account = 1000-50

= $950

You might be interested in
Several months after the reorganization, Jim Umpleby checks in with department managers to see how their employees are handling
Nat2105 [25]

Answer:

The correct answer would be options A and B.

Explanation:

When a company is in financial trouble or faced a bankruptcy, then a process of reorganization is used in an attempt to extend the life of the company through some special arrangement to make the organization successful and progressive.

In this question, Jim wants to know how employees of the company think of the new structure after the reorganization. So the best method to talk to employees directly is to give them a surprise visit and talk to them about the reorganization. Also town hall meetings should be arranged to meet the employees one on one in an informal gathering and talk to them about the reorganization.

6 0
3 years ago
Sinclair Manufacturing Company experienced the following accounting events during its first year of operation. With the exceptio
matrenka [14]

Answer:

Please see the attached image for the Horizontal Financial Statements of Sinclair Manufacturing Company.

Explanation:

5. FURNITURE - Straight Line Method

Book Value of Furniture = Cost of Acquisition - Residual Value

Cost of Acquisition = $9,600

Residual Value = $1,600

Book Value of Furniture = $9,600 - $1,600

Book Value of Furniture = $8,000

Useful Life = 4 years

Depreciation Expense = $8,000 / 4 years

Depreciation Expense = $2,000 per year

6. EQUIPMENT - Straight Line Method

Book Value of Equipment = Cost of Acquisition - Residual Value

Cost of Acquisition = $16,000

Residual Value = $1,000

Book Value of Furniture = $16,000 - $1,000

Book Value of Furniture = $15,000

Useful Life = 5 years

Depreciation Expense = $15,000 / 5 years

Depreciation Expense = $3,000 per year

6 0
3 years ago
Phillips Equipment has 80,000 bonds outstanding that are selling at par. Bonds with similar characteristics are yielding 7.5%. T
ollegr [7]

Answer:

A) 10.15%

Explanation:

Cost of equity (Re) = 14.06% or 0.1406

cost of preferred stock (Rp) = 7/65 = 0.10769

cost of bonds (Rb) = 7.5% or 0.075

 outstanding shares = 2.5 million shares x $42 = $105 million

bonds outstanding = $1,000 x 80,000 bonds = $80 million

preferred stock = $65 x 750,000 = $48.75 million

corporate tax rate = 38% or 0.38

total market value of equity + debt (in millions) = $105 + $48.75 + $80 = $233.75

WACC = [(outstanding shares / total market value) x Re] + [(preferred stock / total market value) x Rp] + {[(bonds outstanding / total market value) x Rb] x (1 - tax rate)}

WACC = [($105m / $233.75m) x 0.1406] + [($48.75m / $233.75m) x 0.10769] + {[($80m / $233.75m) x 0.075] x (1 - 0.38)}

WACC = 0.06316 + 0.02246 + 0.01591 = 0.10153 or 10.15%

6 0
3 years ago
Broussard is already at full capacity, so its assets must grow at the same rate as projected sales. At the end of 2019, current
AlekseyPX

Answer: $‭412,600‬

Explanation:

AFN = Increase in assets - Increase in Liabilities - Addition to Retained Earnings

Increase in Assets

= 5,000,000 *  15%

= $750,000

Increase in Liabilities

Only use Accruals and Accounts Payable

= (450,000 + 450,000) * 15%

= $135,000

Additional to Retained Earnings

= After tax Profit

= 9,200,000 * 4%

= $368,000

Addition to retained earnings = 368,000 * ( 1 - payout ratio)

= 368,000 * ( 1 - 45%)

= $202,400‬

Additional Funds Needed (AFN) = 750,000 - 135,000 - 202,400

= $‭412,600

8 0
3 years ago
Haylock Inc. bases its manufacturing overhead budget on budgeted direct labor-hours. The direct labor budget indicates that 8,00
Yuliya22 [10]

Answer:

Check the explanation

Explanation:

Calculate august cash disbursement for manufacturing budget :

 August

Direct labour hour                                                          8000

Variable overhead per hour                                            1.40

Variable manufacturing overhead                                11200

Fixed manufacturing overhead                                   100540

Total manufacturing overhead                                    111740

Less : Depreciation                                                       -8810

Cash disbursement for manufacturing overhead    102930

3 0
3 years ago
Other questions:
  • Which best describes the benefits of renting a home?
    12·2 answers
  • Suppose you manage a local grocery store, and you learn that a very popular national grocery chain (Whole Foods or Walmart) is a
    9·1 answer
  • In a production budget, if the number of units in finished goods inventory at the end of the period is less than the number of u
    15·1 answer
  • Assume that on 1/1/xx, a parent company acquired 90% interest in a subsidiary. The total fair value of the controlling and nonco
    5·1 answer
  • Lakeland Chemical manufactures a product called Zing. Direct materials are added at the beginning of the process, and conversion
    8·1 answer
  • Khabib orrrrr Mcgregorr <br> choose wisely :)
    15·2 answers
  • Bell’s database has been hacked and sensitive information has been compromised to its competitors leading to loss suffered by it
    13·2 answers
  • An error in the physical count of goods on hand at the end of a period resulted in a $10,000 overstatement of the ending invento
    8·1 answer
  • Ramirez Company installs a computerized manufacturing machine in its factory at the beginning of the year at a cost of $48,400.
    10·1 answer
  • The newest employee at Edwards Escrow Co., Adam Riley, is handling the escrow
    5·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!