Answer:
Debt to Equity Ratio = 0.86
Explanation:
Debt to Equity Ratio = Total Liabilities / Stockholder's Equity
Total Liabilities = $0.84 million
Stockholder's Equity = $0.98 million
Debt to Equity Ratio = $0.84 million / $0.98 million
Debt to Equity Ratio = 0.857143
Debt to Equity Ratio = 0.86
B. 27.27 27.27%
C. 72.73 72.73%
D. 100.00%
Answer:
See answers below
Explanation:
a. Direct materials & supplies $40,000 = $40,000 × 110%
= $44,000 × 20,000/25,000
= $35,200
Employee costs = $2,900,000 × 105%
= $3,045,000 × 20,000/25,000
= $2,346,000
Variable overhead = $600,000 × 100%
= $600,000 × 20,000/25000
= $480,000
Fixed overhead = $700,000 × 105%
= $735,000
b. Total costs per unit year 2 =
$3,596,000 / 20,000
= $179.81
Answer:
Employee costs for year 2 should be $2,436,000.
Total costs in year 2:
$35,200+$2,436,000+$480,000+$735,000=$3,686,200
b) Total costs per billable hour for year 2=$3,686,200/20000=$184.31
Explanation:
Answer:
a) Assets: Reserves $200,000; Liabilities: Deposits $200,000
b) Amount Deposited: $2000,000; Change in Excess Reserves: $190,000; and Change in Required Reserves: $10,000
c) See the calculation below and the attached excel file for the table.
d) the $200,000 injection into the money supply results in an overall increase of $4,000,000 in demand deposits.
Explanation:
These can be answered as follows:
a) Complete the following table to reflect any changes in First Main Street Bank's T-account (before the bank makes any new loans).
Note: See the attached excel file for the table.
The $200,000 deposited by Lorenzo to First Main Street Bank led to the creation of both an asset and a liability for First Main Street Bank.
As a result, the reserve of the bank is increased by $200,000 on the asset side of the T-account. It is therefore now possible for the ban to grant loan to other customers from these additional reserves.
In addition, the demand deposit of the bank is increased by $200,000 on the liability side of the T-account. This is recorded as a demand deposit because it is possible for Lorenzo to come at any time to the band to withdraw his deposit either by using a debit card or by writing a check.
b) Complete the following table to show the effect of a new deposit on excess and required reserves when the required reserve ratio is 5%. Hint: If the change is negative, be sure to enter the value as negative number.
Note: See the attached excel file for the table. Just scroll the excel file down to part b.
The required reserve ratio of 5% indicates that First Main Street Bank has to hold 5% of the $200,000 the deposit or fresh fresh reserves, and this will result in having a 95% excess reserve which the bank can employ to grant loans.
From the amount deposited, the change in excess reserve and the change in the required reserve can be computed as follows:
Amount deposited = $200,000
Change in excess reserve = $200,000 * (1 - 5%) = $190,000
Change in required reserve = $200,000 * 5% = $10,000
c) Now, suppose First Main Street Bank loans out all of its new excess reserves to Juanita, who immediately uses the funds to write a check to Gilberto. Gilberto deposits the funds immediately into his checking account at Second Republic Bank. Then Second Republic Bank lends out all of its new excess reserves to Lorenzo, who writes a check to Neha, who deposits the money into her account at Third Fidelity Bank. Third Fidelity lends out all of its new excess reserves to Teresa as well.Fill in the following table to show the effect of this ongoing chain of events at each bank. Enter each answer to the nearest dollar.
Note: See the attached excel file for the table. Just scroll the excel file down to part c.
As already computed in part b above, we have the following to show the effect of this ongoing chain of events at each bank, we have:
For First Main Street Bank:
Increase deposit = Deposit from Lorenzo = $200,000
increase in required reserve = $200,000 * 5% = $10,000
Increase in loans = Loan to Juanita = $200,000 * (1 - 5%) = $190,000
For Second Republic Bank:
Increase deposit = Deposit from Gilberto = $190,000
Increase in required reserve = $190,000 * 5% = $9,500
Increase in Loans = Loans to Lorenzo = $190,000 * (1 - 5%) = $180,500
For Third Fidelity Bank:
Increase deposit = Deposit from Neha = $180,500
Increase in required reserve = $180,500 * 5% = $9,025
Increase in Loans = Loans to Teresa = $180,500 * (1 - 5%) = $171,475
d) Assume this process continues, with each successive loan deposited into a checking account and no banks keeping any excess reserves. Under these assumptions, the $200,000 injection into the money supply results in an overall increase of in demand deposits.
In order to calculate this, the formula for the money multiplier is used to multiply the initial deposit or injection of $200,000 by Lorenzo as follows:
Money multiplier = 1/r
Where r denotes required reserve ratio of 5%, or 0.05.
Therefore, we have:
Overall increase in demand deposits = Injection * (1 / r) = $200,000 * (1 / 0.05) = $200,000 * 20 = $4,000,000
Therefore, the $200,000 injection into the money supply results in an overall increase of $4,000,000 in demand deposits.
When the Federal Reserve buys a government bond from a client of First Main Street Bank, the bank's assets increase by the bond value and its liabilities increase by the same amount in deposits.
In this scenario, when the Federal Reserve buys a $200,000 government bond from Lorenzo, a client of First Main Street Bank, and he deposits the money into his checking account at the bank, there are changes in the bank's T-account. The bank's assets increase by $200,000 in reserves, while its liabilities increase by $200,000 in deposits.
Next, if First Main Street Bank loans out all of its new excess reserves to Juanita, who writes a check to Gilberto, Gilberto deposits the funds into his checking account at Second Republic Bank. This process continues with each successive loan deposited into a checking account at each bank. The increase in deposits, required reserves, and loans at each bank can be filled in the table provided.
Assuming this process continues with no banks keeping any excess reserves, the $200,000 injection into the money supply results in an overall increase of $200,000 in demand deposits.
#SPJ3
Answer:
a. Assuming an investor prefers the extra $0.50 per year, then he/she can invest the $5 received as special dividend and earn $0.50 himself/herself in the same or similar risk free investment.
b. If the investor needed or wanted the $5 instead of $0.50 extra per year, he/she can borrow the $5 and use the extra $0.50 per year to pay the interests on the loan.
Revenue for fiscal 2015 (i.e., the year ended January 2, 2016) of $616,778.
Bad debt expense for fiscal 2015 of $0.
Required:
Compute the amount of cash collected from customers during fiscal 2015.
Answer:
iRobot
The amount of cash collected from customers during fiscal 2015 = $583,155.
Explanation:
a) Data and Calculations:
Allowance at January 2, 2016 = $33
Allowance at December 27, 2014 = $67
Accounts Receivable at January 2, 2016 = $104,679
Accounts Receivable at December 27, 2014 = $71,056
Revenue for 2015, year ended Jan 2, 2016 = $616,778
Bad debt expense for 2015 = $0
Computation of the Cash collected from customers during fiscal 2015:
Accounts Receivable
Dec. 27, 2014 Balance $71,056
2015 Revenue 616,778
Jan. 2, 2016 Balance (104,679)
2015 Cash $583,155
The exchange rate for converting the druba to the troon is1 troon = 1.5 druba.
The amount in dollar that is obtained as the exchange rate in between two different currencies refers to the par value. This par value of currency depends on the exchange rates. Say for an instance, one British pound has the value of three U.S dollars and if an individual has 100 pounds, then $300 will be the par value in dollars.
The currency devaluations up to 10 percentage were allowed under the Bretton Woods system. This can also be done only getting approvals form the International Monetary Funds. When considering gold, the total amount of currency that is essential in purchasing one ounce of gold is known as gold par value. The exchange rate for converting the druba to the troon is 1 troon = 1.5 druba.