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Anton [14]
3 years ago
9

How does fractional reserve banking grow the economy?

Business
1 answer:
Aleks [24]3 years ago
6 0

Answer:

C. By allowing the same money to be both stored as a deposit and  loaned to businesses is the correct answer.

Explanation:

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QS 7-10 (Algo) Aging of receivables method LO P3 Net Zero Products, a wholesaler of sustainable raw materials, prepares the foll
goldenfox [79]

Part-1  Computation of Estimated Uncollectible - Dhaliwal

Account Receivable  (a% of uncollectible (b)Uncollectible amount (a*b)

Not Due $1,00,000.00    1%                                   $1,000.00

1 to 30 $38,000.00           2%                                      $760.00

31 to 60 $17,000.00          4%                                       $680.00

61 to 90 $14,000.00            6%                                  $840.00

over 90 $16,000.00          10%                               $1,600.00

Estimated Balance of allowance for uncollectible $1,85,000.00   $4,880.00

 Part 2: Journal Entry

Account Titles and Explanation Debit Credit

Bad Debt Expenses

(4880-3000)                                          $1,880.00  

Allowance for doubtful accounts   $1,880.00

An account may be the document in a gadget of accounting wherein a business records debits and credits as proof of accounting transactions. as a consequence, the bills receivable account shops information approximately billings to customers, as well as reductions of those billings due to payments from clients.

3 specific types of debts in accounting are actual, private, and Nominal Accounts. the real account is then categorized into subcategories – Intangible real account, Tangible actual account. additionally, 3 distinct sub-forms of non-public accounts are natural, representative, and synthetic.

Learn more about accounts here: brainly.com/question/25746199

#SPJ4

5 0
1 year ago
When does the Murderer strike?<br><br><br><br><br><br><br> The ANS is , .
OleMash [197]

Answer:

at midnight

Explanation:

7 0
3 years ago
Ortions of the financial statements for Myriad Products are provided below.
bonufazy [111]

Answer:

Net cash provided from Operating Activities $301

Explanation:

MYRIAD PRODUCTS COMPANY

Cash flow from Operating Activities:

Net Income $150

Adjustment for non cash effects:

Depreciation $84

Amortization $5

Loss on sale of land $4

Total $243

Changes in operating assets and liabilities :

Decrease in Accounts receivable $17

Decrease in Inventory $18

Increase in Accounts Payable $14

Decrease in Salaries Payable ($14)

Increase in Interest Payable $13

Increase in Income tax Payable $10

Net cash provided from Operating Activities $301

5 0
3 years ago
Cartels are difficult to maintain because a. ​the monopoly output is very difficult to determine. b. ​the number of firms is alw
Ostrovityanka [42]

Answer:

The correct answer is option d.

Explanation:

Cartels are generally formed in oligopoly markets. In such markets there are few firms which are interdependent. So, they form cartels to enjoy monopoly power.

Though cartels are generally short lived and difficult to maintain. The reason behind this is that each firm has the incentive to deviate and produce more than their quota in order to capture more market share.

So, option d is the correct answer here.

6 0
3 years ago
Booth's fixed assets were used to only 50% of capacity during 2019, but its current assets were at their proper levels in relati
hoa [83]

This question is incomplete. The complete question is given below:

The Booth Company's sales are forecasted to double from $1,000 in 2016 to $2,000 in 2017. Here is the December 31, 2016, balance sheet:

Cash  $  100  Accounts payable  $   50

Accounts receivable  200  Notes payable  150

Inventories  200  Accruals  50

Net fixed assets  500  Long-term debt  400

Common stock  100

Retained earnings  250

Total assets  $1000  Total liabilities and equity  $1000

Booth's fixed assets were used to only 50% of capacity during 2016, but its current assets were at their proper levels in relation to sales. Spontaneous liabilities and all assets except fixed assets must increase at the same rate as sales, and fixed assets would also have to increase at the same rate if the current excess capacity did not exist. Booth's after-tax profit margin is forecasted to be 3% and its payout ratio to be 50%. What is Booth's additional funds needed (AFN) for the coming year? Round your answer to the nearest dollar.

Answer:

Booth's additional funds needed (AFN) for the coming year = 370

Explanation:

Additional Funds Needed (AFN):

Additional Funds Needed (AFN) is a way of calculating how much new funding will be required, so that the firm can realistically look at whether or not they will be able to generate the additional funding and therefore be able to achieve the higher sales level.

Formula of AFN:

AFN = [ ( A / S0 ) * ΔS - ( L / S0 ) * ΔS - MS1 * ( RR ) ]

where

A = Assets linked with sales

Formula for Assets:

Assets = Cash + Account receivable + Inventories

As

Cash = 100

Account receivable = 200

Inventories = 200

therefore by putting the values in the above formula, we get

= 100 + 200 + 200

= 500

ΔS = Difference in sales between S0 and S1

S0 = Sales of last year

S1 = Total projected sales for next year

As the Booth Company's sales are forecasted to double from $1,000 in 2016 to $2,000 in 2017 so

ΔS = 2000 - 1000

ΔS = 1000

L = Spontaneous liabilities

Formula for Spontaneous liabilities:

L = Accounts payable + Accruals

therefore by putting the values in the above formula, we get

L = 50 + 50

L = 100

MS1 = Projected net income

RR = Retention Ratio

M = 0.05

RR = 1 - 0.7

RR = 0.3

therefore by putting the values in the above formula, we get

Additional Funds Needed = ( 500 / 1000 ) * 1000 - ( 100 / 1000 ) * 1000 - 0.05 * 2000 * 0.3

Additional Funds Needed = 370

Therefore, Booth's additional funds needed (AFN) for the coming year = 370

6 0
3 years ago
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