I need help find out the profit or loss

Bank ABC has checkable deposits of $415 million and total reserves of $50 million. The required reserve ratio is 9 percent. The

umka21 [38]

Answer:

$12,650,000.

Explanation:

Reserves is the total amount of a bank's deposit that is not given out as loans

Reserves = Deposits - outstanding loans

Required reserves is the percentage of deposits required of banks to keep as reserves by the central bank

Required reserves = reserve requirement x deposits

0.09 x 415 million = 37.35 million

Excess reserves is the difference between reserves and required reserves

50 million - 37.35 million = 12.65 million

6 0

3 years ago

A distributor of large appliances needs to determine the order quantities and reorder points for the various products it carries

laiz [17]

Answer:

a) 32 refrigerators

b) 28.39 approximately 29 refrigerators

Explanation:

Given:

Cost of order, S = $100

H = 20% of 500 = 100

Cost of refrigerator = $500

Annual demand, D = 500

S.d = 10

Lead time, L = 7 days.

a) To find the economic order quantity, Q_opt, let's use the formula:

$Q_opt = \sqrt{\frac{2*D*S}{H}}$

$= \sqrt{\frac{2*500*100}{100}} = 32$

The economic order quantity is 32 refrigerators.

b) The reorder point, R, is calculated as:

R = (d' * L) + ( z * s.d)

Where d' is daily demand which is calculated by dividing annual demand by 365 days.

d' = 500/365 = 1.37

At 97% service probability.

Using the excel function, NORMSINV(0.97) = 1.88.

Therefore z = 1.88

Solving for R, we have:

R = (1.37 * 7) + (1.88 * 10)

= 28.39

≈ 29

If the distributor wants a 97% service probability, the reorder point, R, should be 29 refrigerators

8 0

2 years ago

Rica Company is a priceminustaker and uses a targetminuspricing approach. Refer to the following information: Production volume

snow_tiger [21]

Answer:

$ 15,836,000

Explanation:

Given:

Production volume = 602,000 units

Market Price per unit = $ 30

Desired operating income = 16% of the total assets

Total assets = $ 13,900,000

Thus,

Desired operating income = 0.16 × $ 13,900,000 = $ 2,224,000

Now,

the desired profit = Total sales - Total income

or

Desired profit = (Production volume × Market Price per unit ) - Total income

on substituting the respective values, we have

Desired profit = (602,000 × $ 30) - $ 2,224,000

or

Desired profit = $ 18,060,000 - $ 2,224,000

or

Desired profit = $ 15,836,000

7 0

3 years ago

Zuo Software categorizes its accounts receivable into four age groups for purposes of estimating its allowance for uncollectible

yaroslaw [1]

Answer:

(1) $66,500

(3) $453,500

Explanation:

(1) Account receivable total:

= $400,000 + $50,000 + $40,000 + $30,000

= $520,000

Allowance for uncollectible account total:

= ($400,000 × 8%) + ($50,000 × 15%) + ($40,000 × 30%) + ($30,000 × 30%)

= $32,000 + 7,500 + $12,000 + $15,000

= $66,500

Balance of allowance for uncollectible accounts on 12/31/2021 is $66,500.

(2) Journal entry for adjusting the allowance for uncollectible account is :

Bad debt expense A/c Dr. $44,500

To Allowance for uncollectible account $44,500

(Adjusting entry)

Workings:

= Amount uncollectible - credit balance in its allowance for uncollectible accounts

= $66,500 - $22,000

= $44,500

(3) Net account receivable balance on 12/31/2021:

Accounts receivables total = $520,000

Allowance for uncollectible account = $66,500

Net Account Receivables:

= Accounts receivables total - Allowance for uncollectible account

= $520,000 - $66,500

= $453,500

7 0

3 years ago

What happens when a bank is required to hold more money in reserve?

valina [46]

The thing that happens when a bank is required to hold more money in reserve is It has less money for loans.

<h3>What happens when reserve requirements are increased?</h3>

Banks are known to often hold a lot of reserves if reserve requirements are increased.

This is because it is one that they can be able to use if they want to loan out less of each dollar that is said to be deposited. By raising the the reserve ratio, and also lowers the money multiplier, and lowering the money supply.

Therefore, The thing that happens when a bank is required to hold more money in reserve is It has less money for loans.

Learn more about reserve from

brainly.com/question/25817380

#SPJ1

8 0

1 year ago

I need help find out the profit or loss​

I need help find out the profit or loss