Which of the following is not a bad faith action
1 answer:
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Answer: $186,000
Explanation:
January is the 2nd month from November which means that all of November's $31,000 will be collected in January.
January is the first month after December so 30% of December sales should be collected in January. 50% has already been collected in December and this left $50,000.
Total credit sales in December must have been:
= 50,000 / 50%
= $100,000
Amount to be collected in January for December:
= 100,000 * 30%
= $30,000
Amount to be collected from January credit sales:
= 50% * 150,000
= $75,000
January cash sales = $50,000
Total cash in January :
= 31,000 + 30,000 + 75,000 + 50,000
= $186,000
Answer:
The money supply decreases by $4,500.
Explanation:
The amount of deposits is $8,000.
The required reserve ratio is 10%.
The amount of required reserve
= 10% of $8,000
=
= $800
The amount to be loaned out
= Total deposit - Required reserves
= $8,000 - $800
= $7,200
The money supply is equal to money multiplier times the monetary base.
Money supply
=
=
= $72,000
So, the money supply before withdrawal is $72,000.
After withdrawal of $500, the deposits is
= $8,000 - $500
= $7,500
The amount of required reserve
= 10% of $7,500
=
= $750
The amount to be loaned out
= Total deposit - Required reserves
= $7,500 - $750
= $6,750
Money supply
=
=
= $67,500
So, the money supply after withdrawal is $67,500.
The decrease in money supply
= $75,000 - $67,500
= $4,500