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2 years ago

Use the information presented in Northeastern Mutual Bank's balance sheet to answer the following questions.

Business

1 answer:

Nana76 [90]2 years ago

4 0

Answer:

The explanation is given as follows.

Explanation:

Task 1:

The higher the percentage of assets a bank holds as loans, the higher the capital requirement.

When the owners of the bank borrow $100 to supplement their existing reserves , both reserves and debt increase by $100 , therefore increase in debt as in any balance sheet , the total value of accounts on the left hand should be equal to the right hand , so when there is increase in reserves , there will be increase in debt.

Task 2:

It specifies a minimum leverage ratio for all banks

leverage ratio initially = total assets / capital = 1750 / 125 = 14

leverage ratio new value = total assets / capital = 1850 / 125 = 14.8 ( the assets increase by $100 with increase in reserves)

Task 3

Its intended goal is to protect the interests of those who hold equity in the bank.

Capital requirement are there to ensure that bank have enough capital to repay the depositors and debtors and if a bank holds a higher percent of risky assets , capital requirements will be higher so that the bank remains solvent hence option a is right answer.

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Which Act was enacted as a response to the rising level of unsecured consumer debt?

musickatia [10]

The Credit Card Accountability, Responsibility, and Disclosure Act of 2009 or also known as the Credit CARD Act was passed on May 22, 2009. This act will make it easier for the consumers to settle their credit card liability balances. This is made as an answer to the increasing number of consumer debt.

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2 years ago

Theo wants to have $40,000 for a down payment on a house five years from now. He can either deposit one lump sum today or he can

juin [17]

Answer:

$1932.37

Explanation:

To find out how much additional money he must deposit if he waits for 1 year rather than making a deposit today we need to find the difference:

Difference = Value after 1 year - Present value

We first convert the interest rate percentage by dividing interest rate value by 100

Present Value = $40 000 / (1 + 0.035)5 = $7729.47

Value after 1 year = $40 000 / (1 + 0.035)4 = $9661.81

Difference = $9661.81 - $7729.47 = $1932.37

4 0

1 year ago

Marst Corporation's budgeted production in units and budgeted raw materials purchases over the next three months are given below

posledela

Answer:

60,000 units

Explanation:

January February

Budgeted production 50,000 60,000 (4)

Raw materials per unit 2 pounds 2 pounds

Raw materials needed 100,000 120,000 (3)

Add: Ending raw materials 36,000 (2) 48,000

Raw materials available 136,000 (1) 168,000

Less: Beginning raw 30,000 36,000

materials

Budgeted raw materials 106,000 132,000

Note:

1. Budgeted raw materials for January = Raw materials available - Beginning raw materials

106,000 = Raw materials available - 30,000

Raw materials available = 106,000 + 30,000 = 136,000 pounds

2. Raw materials needed + Ending raw materials = Raw materials available

100,000 + Ending raw materials = 136,000

Ending raw materials = 136,000 - 100,000 = 36,000

3. As the company wants raw materials on hand at the end of each month equal to 30% of the following month's production needs, the raw materials needed for the month of February -

Ending raw materials for January = Raw materials needed for February × 30%

or, 36,000 = Raw materials needed for February × 30%

Raw materials needed for February = 36,000 ÷ 30%

Therefore, Raw materials needed for February = 120,000

4. Budgeted production × Raw materials per unit = Raw materials needed

Budgeted production = Raw materials needed ÷ Raw materials per unit

Budgeted production = 120,000 ÷ 2 pounds = 60,000 units

7 0

1 year ago

A flood damaged several vans belonging to a nongovernmental, not-for-profit organization. A professional mechanic repaired the v

Westkost [7]

Answer:

b. As both an increase in the equipment account and an increase in contributions from donated services.

Explanation:

When the flood damages the vehicles there was a loss in the value of the organisation's equipment. The actor of restoring it to its previous state will require an addition to equipment account. So there will be an increase in equipment.

The services provided by the mechanic were free and will be recorded as a donated service. This is an increase in contributions from donated services.

There is no expense recorded as the services were performed for free.

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1 year ago

Omicore Softworks, a software development firm, undertook a project that involved developing a bespoke accounting software for a

kupik [55]

Answer:

J-shaped curve

Explanation:

Project life cycle is the cycle or the phase, where the project goes or dealt with the initiation to its closure. In short, it can be defined and modified as per the aspects and the needs or requirements of the company.

J- shaped curve, is the curve which has the life cycle curve, that is convex to the baseline at the finish or end of the life of the project. And the curves runs or move parallel to the y axis.

Under this situation, the scenario of the project is J-shaped curve.

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1 year ago