Answer:
The net cash flow of the year amounts to $32,000
Explanation:
The net cash flow of the year is computed as:
Net cash flow = Net income + Depreciation
= $7,000 + $25,000
= $32,000
Where
Net Income is computed as:
Net Income = Sales - COGS (Cost of goods sold) - Depreciation expense - Selling and administrative expense - Income tax expense
= $300,000 - $170,000 - $25,000 - $95,000 - $3,000
= $7,000
Answer:
The bank will create excess reserve of $200 billion
Explanation:
The question measures the size of credit expansion associated with the new currency deposit. the computation below shows how excess reserves can be computed.
Money multiplier = 1
/Legal Reserve Ratio = 1/0.2 = 5
Excess Reserve Created = A x (1
/Legal Reserve Ratio)
Where: A = New currency deposit = $40
Legal Reserve Ratio = 0.20
Excess Reserve Created = $40 x (1/0.2) = $40 x 5 = $200 billion
The legal reserve of 5 indicates that for every unit of money reserved by banks, they are able to create 5 units of same.
The money creation capability of the banking system as a whole is depends on the legal reserve ratio. Legal reserve ratio is a fraction of a bank deposit which the law requires them to hold. The bank can only lend the balance after deducting the legal reserve.
Property rights are: b. The right that individuals or firms have to buy or sell their property, and the exclusive use of their property
These properties can either be owned by the government, an organization or an individual. The right to property has four properties or rights:
Good’s usage
Make money from the goods
Sell the good to others
Property rights administration
Answer:
<u>will</u>, <u>would like </u>
Explanation:
Bond refers to debt instruments whereby corporates raise long term finance agreeing to pay in return, the holders of such securities (bond holders), timely coupon payments and principal repayment at the end of the term.
The fixed rate of interest bondholders receive is referred to as the coupon rate. The rate of interest received by holders of similar bonds in the market refers to an investors expected rate of return also denoted as YTM i.e yield to maturity.
Yield to maturity refers to the rate of return other investors are earning on similarly priced bonds in the market. Higher the yield to maturity, lower will be the present value of bond.
When coupon rate of payment is higher than YTM, such bonds are priced at a premium.
Answer: (B) Non-profit
Explanation:
The non-profit organization is one of the type of charitable association that do not paying any type of tax and it basically operating on the basis of scientific, educational and the religious purpose.
According to the given question, Judy is basically starting the new business and she recognizing the various types of music activities socialization and also the memory challenging process for the senior citizen.
She is using the excess funds for developing the programs rather than focusing on the personal profit. Hence, on the basis of given scenario, Judy organization is classifying as non-profit organization.
Therefore, Option (B) is correct answer.
