Question 1
complete the following problems from chapters 4 and 5 in the textbook: 1. A new bank has vault cash of $1 million and $5 million in deposits held at its Federal Reserve District Bank. a. If the required reserves ratio is 8 percent, what dollar amount of deposits can the bank have? b. If the bank holds $65 million in deposits and currently holds bank reserves such that excess reserves are zero, what required reserves ratio is implied? 2. Assume a bank has $5 million in deposits and $1 million in vault cash. If the bank holds $1 million in excess reserves and the required reserves ratio is 8 percent, what level of deposits are being held? 3. A bank has $110 million in deposits and holds $10 million in vault cash. a. If the required reserves ratio is 10 percent, what dollar amount of reserves must be held at the Federal Reserve Bank? b. How would your answer in Part (a) change if the required reserves ratio was increased to 12 percent? 4. Assume that Banc One receives a primary deposit of $1 million. The bank must keep reserves of 20 percent against its deposits. Prepare a simple balance sheet of assets and liabilities for Banc One immediately after the deposit is received. 5. The SIMPLEX financial system is characterized by a required reserves ratio of 11 percent; initial excess reserves are $1 million, and there are no currency or other leakages. a. What would be the maximum amount of checkable deposits after deposit expansion, and what would be the money multiplier? b. How would your answer in (a) change if the reserve requirement had been 9 percent? 6. Challenge Problem ABBIX has a complex financial system with the following relationships: The ratio of required reserves to total deposits is 15 percent, and the ratio of noncheckable deposits to checkable deposits is 40 percent. In addition, currency held by the nonbank public amounts to 20 percent of checkable deposits. The ratio of government deposits to checkable deposits is 8 percent. Initial excess reserves are $900 million. a. Determine the M1 multiplier and the maximum dollar amount of checkable deposits. b. Determine the size of the M1 money supply. c. What will happen to ABBIX?s money multiplier if the reserve requirement decreases to 10 percent while the ratio of noncheckable deposits to checkable deposits falls to 30 percent? Assume the other ratios remain as originally stated. d. Based on the information in (c), estimate the maximum dollar amount of checkable deposits, as well as the size of the M1 money supply. e. Assume that ABBIX has a target M1 money supply of $2.8 billion. The only variable that you have direct control over is the required reserves ratio. What would the required reserves ratio have to be to reach the target M1 money supply amount? Assume the other original ratio relationships hold. f. Now assume that currency held by the nonbank public drops to 15 percent of checkable deposits and that ABBIX?s target money supply is changed to $3.0 billion. What would the required reserves ratio have to be to reach the new target M1 money supply amount? Assume the other original ratio relationships hold.
Question 2
Cost Accounting Which of the following activities is most likely to he classified as value-added for a manufacturing company? A. storing B. ordering C. inspecting D. assembling 2. Which of the following activities is most likely to be classified as value-added for a merchandise company? A. purchasing B. waiting C. receiving D. setting up 3. Activity-based cost management (ABM) can best be defined as A. a cost system using multiple departmental overhead rates. B. the use of cost information gathered using activity-based costing (ABC). C. a quality-control system focusing on eliminating errors and mistakes. D. an incentive system for a company's key decision-makers. 4. Which of the following items would be classified as a hatch-level cost in an activity-based cost management (ABM) system? A. indirect labor B. production supervisor's salary C. depreciation on factory building D. machinery set-up costs 5. Which of the following items would be classified as a product-level cost in an activity-based cost management (ABM) system? A. change order to meet new a new customer's specification B. movement or materials for products in production C. long-term lease payments for factory equipment D. insurance and property taxes on faculty building 6. Which of the following items would not he used as the cost driver for a volume-level cost in an activity-based cost management (ABM) system? A. direct labor hours B. machine hours C. units produced D. square footage 7. In an activity-based cost management (ABM) system, facility-level costs are those that are incurred to: A. sustain the company's marketing program. B. maintain the plant's production capacity. C. support the research and development process. D. caused by a change in the engineering plans for a product. 8. Activity-based costing (ABC) information cannot be used by managerial decision-makers to evaluate the A. profitability of a customer. B. market potential of a product. C. cost of using a particular supplier. D. whether to continue providing a service. 9. Green Lumber Supply noticed a recent decline in the amount of purchases from a key customer. Worried that other customers might also reduce their purchases, Green's management decided to evaluate the cost of its delivery service. Which of the following cost drivers should be used for general administrative costs of the Delivery Department'? A. number of orders entered B. value ofeach order C. number of items in each order D. number of deliveries made 10. The unused resource capacity is the difference between the resources supplied and the resources A. purchased. B. wasted. C. used. D. on hand. 11. The amount of production possible under normal working conditions, including planned downtime and scheduled vacations, is called A. actual capacity B. normal capacity. C. practical capacity. D. theoretical capacity. 12. Which of the following statements regarding quality costs is(are) false'? (A) In a cost of quality system, internal and external failure costs are called conformance costs. (B) Prevention costs are costs incurred to detect individual units of product that do not conform to its specifications. A. Only A is false. B. Only B is false. C. Both A and I3 are false. D. Neither A nor B is false. 13. Which of the following is not an example of a prevention cost? A. Training employees to improve quality B. Designing products to reduce production problems C. Correcting product defects before they are sold D. Inspecting the production process as it occurs 14. Which of the following is an example of a prevention cost? A. Machine inspection B. Warranty repairs C. Field testing D. Marketing costs 15. Which of the following is an example of an internal failure cost? A. Training employees to improve quality B. Designing products to reduce production problems C. Correcting product defects before they are sold D. Inspecting the production process as it occurs. 16. Which of the following is not an example of an external failure cost'! A. Accepting company liability resulting from product failure B. experiencing decreasing sales as a result of poor-quality products C. Repairing or replacing defective products after they've been sold D. Testing products in use at the customer's site 17. Which of the following items is included in almost all quality control systems'? A. Quality-related waiting time B. Quality planning and analysis C. Excess or obsolete inventory D. Quality-related overtime 18. Beta Company is preparing its annual profit plan. As part of its analysis of the profitability of its customers, management estimates that the $12,000 for sales support should be assigned to the individual customers from the information given as follows: Customer A Customer B Units purchased 100,000 200,000 Purchase orders(annual) 5 20 What is the amount of the sales support costs that should be allocated to customer A assuming Beta uses activity-based costing (ABC)? A. $2,400 B. $4,000 C. 8,000 D. 9,600 E. Some other answer 19. Which of the following statements about activity-based costing (ABC) is not true? (CIA adapted) A. In ABC, cost drivers are what cause costs to be linked to products. B. ABC is useful for assigning marketing and distribution costs C. ABC differs from traditional costing systems in that products are not cross-subsidized. D. ABC is more likely to result in major differences from traditional costing systems if the firm manufactures only one product rather than multiple products. 20. In an activity-based costing (ABC) system, cost reduction is accomplished by identifying and eliminating (CPA adapted) All Cost Drivers Nonvalue-added Activities A. No no B. Yes yes C. No yes D. Yes no 21. Black Company?s cost management and product costing procedures follow activity-based costing (ABC) principles. Activities have been identified and classified as being either value-added or nonvalue ?added for each product. Which of the following activities, used in Black?s production process, is nonvalue-added? (CPA adapted A. Drill press activity B. Heat treatment activity C. Design engineering activity D. Raw materials storage activity BC Enterprises? quality control report for august 2008 contains the following item. Gathering, analysis, and reporting quality data $1,000 Inspecting raw materials received from vendors $2,000 Testing and inspecting finished products $3,000 Visiting customer sites and addressing complaints $4,000 Designing product to reduce production problems $5,000 Repairing and/ or replacing products under warranty $6,000 Maintaining the equipment used to gather quality data $7,000 Cost (net) of materials wasted during production $8,000 22. What would be the total of the prevention costs on the August 2008 quality control report for BC Enterprises? A. $5,000 B. $7,000 C. $11,000 D. $12,000 E. Some other answer 23. What would be the total of the appraisal costs on the August 2008 quality control report for BC Enterprises? A. $8000 B. $11,000 C. $12000 D. $15000 E. Some other answer 24. What would be the total of the internal failure costs on the august 2008 quality control report for BC Enterprises? A. $8,000 B. $13000 C. $14,000 D. $16,000 E. Some other answer 25. What would be the total of the external failure costs on the August 2008 quality control report for BC Enterprises? A. $4,000 B. $6,000 C. 7,000 D. 14,000 E. Some other answer 26. What would be the total of the conformance costs on the August 2008 quality control report for BC Enterprises? A. $22,000 B. $20,000 C. $15,000 D. $13,000 E. Some other answer 27. What would be the total of the nonconformance costs on the August 2008 quality control report for BC Enterprises? A. $22,000 B. 21,000 C. 14,000 D. 13,000 E. Some other answer,i really need this bad,when are u starting?
Question 3
Plantcare, Inc., is a garden care service. The company originally specialized in serving residential clients but has recently started contracting for work with larger commercial clients. Ms. Plantcare, the owner is considering reducing residential services and increasing commercial lawn care. Five field employees worked a total of 10,000 hours last year ? 6,500 on residential jobs and 3,500 on commercial jobs. Wages were $9 per hour for all work done. Direct materials used were minimal and are included in overhead. All overhead is allocated on the basis of labor hours worked, which is also the basis for customer charges. Because of greater competition for commercial accounts, Ms. Plantcare can charge $22 per hour for residential work but only $19 per hours for commercial work. Required: a. If overhead for the year was $62,000, what were the profits of commercial and residential service using labor hours to allocate overhead? b. Overhead consists of office supplies, garden supplies and depreciation and maintenance on equipment. These costs can be traced to the following activities: Activity Level Activity Cost Driver Cost Commercial Residential Office Supplies Number of Clients Served $8,000 15 45 Equipment Depreciation & Maintenance Equipment Hours 18,000 3,500 2,500 Garden Supplies Area Covered (Square yards of garden x # times serviced per year) 36,000 65,000 35,000 Total Overhead $62,000 Recalculate profits for commercial and residential services based on these activity bases. c. What recommendations do you have for management?
Question 4
Kelly's Boutique has several questions for you that Excel can help answer. Kelly is planning for the future and would like you to prepare a present value analysis. Using the file ch7-04 complete a present value analysis for the following situations. Save the file as ch7-04_student_name (replacing student_name with your name). Print both a Value view and Formula view of this completed worksheet. Kelly would like to know the following: a. How much she would have to pay at the end of each year, assuming a 7 percent rate of return, to yield $100,000 at the end of 10 years. b. How much she would have at the end of 10 years if she invested $65,000 today, earning 5 percent per year. c. How much she would have at the end of 10 years if she invested $6,325 at the end of each year, earning 9 percent per year. d. How much she would have to invest today to have $154,324 in 10 years, earning 12 percent per year. Kelly has a very fluctuating workforce based on seasonal demand. She's ranged from having 10 employees in one month to 32 employees in another month. Some employees are paid a salary, others are paid hourly. She would like to know more about how these costs behave. Use the file ch7-05 to complete a cost prediction worksheet. Save the file as ch7-05_student_name (replacing student_name with your name). The worksheet should do the following: a. Calculate variable cost per employee, fixed costs, and a prediction of payroll cost with 22 employees using the Hi-Lo method. b. Calculate variable cost per employee, fixed costs, and a prediction of payroll cost with 22 employees using the Least Squares/Regression method. c. Display a chart of payroll/employees with a trend line. (Be sure to modify each axis so your scatter diagram is better displayed, as you did earlier in this chapter) Check figures: File 7-05 Hi-Lo Method ?Variable cost/employee $3,318.18 Least Squares / Regression Method ?Fixed cost $19,408.19 File 7-06 Percentage of Sales Method ?Allowance for uncollectible accounts (end) 28,000 Aging Method ?Allowance for uncollectible accounts (end) 19,020
Question 5
plscan you help e with the problems i attached,t just found out that the problem i attached that the question where wrong so i was ask to disregard the question i summited and do the one below sorry for the inconvenience A firm has sales of $1,090, net income of $182, net fixed assets of $478, and current assets of $270. The firm has $94 in inventory. What is the common-size statement value of inventory? 52.5 percent 34.8 percent 8.6 percent 19.7 percent 12.6 percent A firm has total assets of $4,430 and net fixed assets of $1,350. The average daily operating costs are $156. What is the value of the interval measure? 33.56 days 28.40 days 19.74 days 8.65 days 39.49 days A firm has a debt-equity ratio of .37. What is the total debt ratio? .41 .27 .59 1.70 1.37 A firm has total debt of $1,330 and a debt-equity ratio of .28. What is the value of the total assets? $1,702 $3,734 $4,750 $2,800 $6,080 Al's Sport Store has sales of $2,710, costs of goods sold of $2,100, inventory of $545, and accounts receivable of $446. How many days, on average, does it take the firm to sell its inventory assuming that all sales are on credit? 133.3 days 94.7 days 93.4 days 73.4 days 148.7 days The Purple Martin has annual sales of $4,700, total debt of $1,230, total equity of $2,400, and a profit margin of 6 percent. What is the return on assets? 6.00 percent 11.75 percent 7.77 percent 22.93 percent 10.09 percent
