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2 years ago

If you deposit $100 of currency into a demand deposit at a bank, this action by itself

Business

1 answer:

Dahasolnce [82]2 years ago

8 0

Answer:

A) Does not change the money supply.

Explanation:

Demand deposits change the monetary base, because the monetary base equals currency plus demand deposits.

However, in itself, a demand deposit does not change the money supply. For the change in the money supply to occur, the bank must loan out some of the money in the deposit.

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A project has been assigned a discount rate of 12 percent. If the project starts immediately, it will have an initial cost of $4

victus00 [196]

Answer:

The value of the option to wait is $0.70,option A.

Explanation:

In calculating the value of the option to wait,I discounted all cash flows under both alternatives, using the discount rate of 12% as given in the question.

Option to start now gives net present value(positive return ) of $360.64 while the other one gives $361.34,invariably option to wait one year gives $0.70($361.34-$360.64) more than the option to start now.

The formula used in the calculating present value is PV=FV(1+r)^n

Where PV=present value

FV=future value

r=rate of interest

n=number of year

Find attached spreadsheet for detailed calculations.

7 0

1 year ago

On July 8, Jones Inc. issued an $80,000, 6%, 120-day note payable to Miller Company. Assume that the fiscal year of Jones ends J

Otrada [13]

Answer:

$307

Explanation:

The computation of the interest expense is shown below:

= Principal × rate of interest × number of days ÷ (total number of days in a year)

= $80,000 × 6% × (23 days ÷ 360 days)

= $307

The 23 days is taking from July 8 to July 31

We simply applied the simple interest formula by multiplying the principal amount with the rate of interest and the time period

3 0

2 years ago

Minden Company is a wholesale distributor of premium European chocolates. The company’s balance sheet as of April 30 is given be

Anettt [7]

Answer:(1a) schedule of cash collected $221,800, schedule of cash disbursement for merchandise purchase $118,900 (1b) cash budget closing balance $19,260 (2) Net income $26,410 (3) Balance sheet Total Asset $364,510, Total Liabilities &Equity $364,510

Explanation:

Schedule of cash collected

Sales. 257,000

Less:Cash sales. 77,100

------------

Credit sales. 179,900

Cash collected in May

Credit sales( 50% ) 77,100

Account Receivable 54,750

May sales (179,900 × 50%) 89,950

---------------

Total cash collected. 221,800

-------------------

Schedule of cash disbursements for merchandise

Cash paid for May purchases (121,000×40%) 48,400

Cash paid for April purchases. 70,500

--------------

Total purchase payment for May. 118,900

-----------------

Cash Budget

Opening balance. 9,600

Add: Receipt

Collection from customers 221,800

Bank loan. 22,000

--------------

Total cash available. 253,400

Less: Disbursements

Purchase payment 118,900

Selling Expenses. 83,700

Note payable. 18,100

Interest on Note payable 340

Purchase of refrigerating equipment 13,100

----------------

Total Disbursement. 234,140

----------------

Closing Balance. 19,260

----------------

Minden company

Budgeted income statements for the month of may

Sales. 257,000

Cost of good sold

Beginning inventory 53,750

Add: purchases. 121,000

---------------

Goods available for sale 174,750

Less: Ending inventory. 31,000

-------------

Cost of good sold. 143,750

----------------

Gross Margin. 113,250

Selling & Administrative Expenses

(83,700 + 2,800) 86,500

---------------

Net operating income. 26,750

Less: interest expense. 340

----------------

Net income. 26,410

------------------

Budgeted Balance sheet

Asset

Cash. 19,260

Account Receivable 89,950

Inventory. 31,000

Building & Equipment

Net of Deprecation.

(214,000 + 13,100 - 2,800) 224,300

-----------------

Total Asset. 364,510

------------------

Liabilities & Equity

Account Payable(121,000 × 60%) 72,600

Note payable. 22,000

Common Stock. 180,000

Retained Earnings( 63,500 + 26,410) 89,910

------------------

Total Liabilities & Equity. 364,510

------------------

8 0

2 years ago

A private pilot wishes to insure his airplane for$200,000. The insurance company estimates that a total loss will occur with pro

Finger [1]

Answer:

The answer is: $6,900

Explanation:

To determine how much the insurance company should charge, we must first calculate the amount of money they expect to pay:

total loss $200,000 x 0.002 = $400
50% loss $100,000 x 0.01 = $1,000
25% loss $50,000 x 0.1 = $5,000

Total $6,400

If the insurance company expects to pay $6,400 per year, they will have to charge $6,900 ($6,400 + $500) to cover their expenses and earn a $500 profit.

4 0

2 years ago

Xer-wise markets and promotes its products to consumers over the internet. melody and tom are considering a more aggressive appr

aniked [119]

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2 years ago