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3 years ago

To stimulate the economy, the Federal Reserve decides that the amount of money in circulation

Business

1 answer:

max2010maxim [7]3 years ago

7 0

Answer:

Lower the reserve requirement ratio

Explanation:

Stimulating the economy requires expansionary monetary policies. These are the actions that increase the money supply in the economy. When there is an increase in the money supply, people and businesses have more money to spend. An increase in spending means a higher demand for goods and services, which motivates increased production.

Reserves requirement is the proposition of customer deposits that commercial banks retain in their custody at all times. A reduction in the reserve requirement ratio implies that banks can loan out a larger proportion of customer deposits. The amount of money available for banks to issue out as loan increases. An increase in lending adds to the money supply in the economy, which, in turn, stimulates economic activities.

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Klingon Cruisers, Inc., purchased new cloaking machinery five years ago for $20 million. The machinery can be sold to the Romula

muminat

Answer:

1) Book Value= $16,464,000

2) Market Value = $19,080,000

Explanation:

The first question is to determine the book value of Klingon's assets today. Book value is the carrying value of the business in its balance sheet.

Book Value = Net working Capital + Current Liabilities + Net Fixed Assets

Net working Capital= $226,000

Current Liabilities= $700,000

Net Fixed Assets= $15,500,000

Book Value = $226,000+ $700,000+$15,500,000= $16,464,000

2) Calculate the market value

The formula for market value = How much the machinery was sold to Romulans today+ today's value of the current assets if they are liquidated

The market value of assets is a function of the current market price they can be sold for and received on the day of the valuation

Market Value= $18,000,000 + $1,080,000= $19,080,000

4 0

3 years ago

Depreciation on factory equipment would be reported in the statement of cash flows prepared by the indirect method in.

ohaa [14]

Depreciation on factory equipment would be reported in the statement of cash flows prepared by the indirect method in the cash flows from investing activities section.

What is depreciation?

Depreciation is an accounting technique that distributes an asset's cost throughout its anticipated useful life. Depreciation is a recurring expense that businesses report on their income statement. Assets degrade with time, losing value.

Which activities are reported on the statement of cash flows?

Transactions must be divided into the three categories of operating, investing, and financing activities that are shown on the statement of cash flows.

Learn more about cash flow statement: brainly.com/question/15278261

#SPJ4

8 0

2 years ago

When Sony launched its new PS4 gaming system, the product was sold as a package that included the game console, game controllers

spin [16.1K]

Answer:

Bundling

Explanation:

Bundling a strategy in which two or more products are packaged together and sold as a single combined unit, often for a lower price than they would charge customers to buy each item separately.

This strategy has a distinct feature which entails that The products and services are usually related, but they can also consist of dissimilar items which appeal to one group of customers.

In the bundling marketing strategy, the strategy of companies offering discounts can stimulate demand, lifting revenues often at the expense of profit margins.

It enables companies roll out different productsat the same time and selling at a discounted price while still making huge profit.

5 0

3 years ago

Read 2 more answers

Suppose that on January 6, 2018, Excel Motors paid $240,000,000 for its 45% investment in Dynamic Motors. Excel has significant

Ivenika [448]

Answer: provided in the explanation segment

Explanation:

To begin we will answer each part accordingly.

For Requirement 1 :

I would say that Excel Motors should use the Equity method to account for its investment in Dynamic Motors, because the investment results in significant influence over the investment company.

For Requirement 2 :

In the books of Excel Motors: we have that;

Transaction/ Event Date Accounts&Explanation Debit ($

) Credit($

)

1. Jan 6, 2018 Investment in Associate 240,000,000

Cash 240,000,000

Accnt&Explan: To record cash paid for equity investment in Dynamic Motors.

2. Cash ( $ 15,000,000 x 45%) 6,750,000

Investment in Associate 6,750,000

Accnt&Explan:To record dividend received in cash from Dynamic Motors

3. Investment in Associate ( $ 10,000,000 x 45%) 4,500,000

Investment Revenue 4,500,000

Accnt&Explan:To record income earned on equity investment

For Requirement 3:

Equity Investment in Dynamic Motors:

Cash 240,000,000 Cash 6,750,000

Investment Income 4,500,000

Ending Balance 237,750,000

244,500,000 244,500,000

The balance would be classified as a non-current asset on the balance sheet dated December 31, 2018

cheers i hope you understand, this is actually in a tabular form.

8 0

3 years ago

What is 5 x + 3 + 3x

elena-s [515]

5x + 3 + 3x = 8x + 3

7 0

3 years ago