Answer:
b. the Federal Reserve System.
Explanation:
Initial margin refers to the deposit made by an investor with a broker, in order to open a margin account. The purpose of initial margin is security and collateral to ensure enough availability of cash in the trading account of the investor.
For instance an investor wants to purchase 4000 shares priced at 15$. In this case, he is supposed to deposit 50% of $60,000 i.e $30,000. The remaining $30,000 is contributed by the brokerage firm, regarded as borrowings on which the investor pays interest.
The initial margin limit is fixed by the Federal Reserve System.
Answer:
Macau
Explanation:
First, we need to understand that all countries are impacted financially due to the corona virus. It's predicted that Corona Virus will cause a loss of around $2.7 trillion in Global Economy.
That being said, some countries are impacted more than the others.
Especially those who rely on tourism and hospitality as their main economy. Macau is probably the one that got the hardest hit. Not only this country is located near China (where the virus originally came from) , tourism and hospitality accounted for around 43% of Macau's economy. Basically half of its economic activity shut down due to the virus.
Answer:
They should be reported in 2 different parts, first under current liabilities as:
Then under long term liabilities:
- Notes payable expected to be refinanced $1,044,000
Explanation:
the total short term notes payable on December 31 = $1,313,000
- $1,044,000 were paid off by issuing common stocks, so that portion of the debt must be reported as notes payable expected to be refinanced (or refinanced debt)
- the remaining $269,000 which were paid using cash reserves must be reported as current notes payable
Answer:
Tunneling Inc.
Degree of operating leverage
= Contribution Margin divided by Operating Income
= $440,000/$290,000 = 1.52
Explanation:
(a) Data and Calculations:
Sales Revenue = $840,000 (10,000 x $84)
Variable cost = $400,000 (10,000 x $40)
Contribution = $440,000
Fixed costs = $100,000
Depreciation = $50,000
Operating Income = $290,000
Tax (21%) ($60,900)
Net Income = $229,100
(b) The degree of operating leverage for Tunneling Inc. is 1.52. It shows the financial impact of a change in sales revenue on Tunneling Inc.'s earnings. Analysts usually work this ratio out to determine this important effect.
decreasing profit margins
