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4 years ago

Bank's Balance Sheet

Business

1 answer:

avanturin [10]4 years ago

4 0

Answer:

1. increase securities , increase owners equity

2. Leverage ratio is 5.2

3. A. The return on each asset

Explanation:

1. If the bank owner decide to imcrease assets by buying new securities through additional funds from them, then securities assets increases by $200 and owners equity increases by $ 200 to balance the balance sheet

2. Leverage ratio= total assets divided by owners equity

= 1950/375= 5.2 ( owners equity increases by $200 to make $375)

3. Banks consider return on assets to allocate asset resources because they weigh risk and return and allocate to resources on the basis of greatest optimal risk return combination

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Firlakuza [10]

Answer:

I agree with the owner of the company

Explanation:

The overall losses are $40,000 per month and the fixed costs are $30,000 per month.

The company should stop production because the losses are over fixed cost and this tells us that the company is not even able to recover the variable costs and because the variable costs are not at least recovered, there would be no point for the company to continue in the business as it would keep on making a loss and the logic might be wrong regarding sunk costs but the decision must be taken in favour where production should be stopped.

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3 years ago

Using the following information: 12/31/17 Accounts receivable $526000 Allowance (35700 ) Cash realizable value $490300 During 20

yawa3891 [41]

Answer:

The change in the cash realizable value from the balance 12/31/17 to 12/31/18 was $37,840 increase.

Explanation:

Cash realizable value of accounts receivable is simply the amount that is deemed recoverable after factoring the portion that is uncollectible.

The effects of the transactions during the year are as follows:

Sales on account:

Debit Accounts receivable $145,400

Credit Sales revenue $145,400

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Collections on account:

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Credit Accounts receivable $100,000

(To recognize collections on account)

Write-off:

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Credit Accounts receivable $3,960

(To recognize write-off of outstanding accounts receivable)

Therefore, the effects of the foregoing journals on Accounts receivable are: $526,000 + $145,400 - $100,000 - $3,960 = $567,440.

As at 12/31/18, cash realizable value would be $567,440 - $39,300 = $528,140. The change in the cash realizable value from the balance at 12/31/17 to 12/31/18 was therefore $528,140 - $490,300 = $37,840 (increase).

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grin007 [14]

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