A company owns $10,000 cash and owns a $20,000 truck. It has one bank loan where it owes the bank $3,000 due in two years. The company has no other assets or liabilities. What is the amount of the company's net assets (stockholders' equity)?
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A company owns $10,000 cash and owns a $20,000 truck. It has one bank loan where it owes the bank $3,000 due in two years. The company has no other assets or liabilities. What is the amount of the company's net assets (
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- Select all that apply Show the effect of recording the borrowing of $10,000 from a bank on the accounting equation. Stockholders' equity increases Stockholders' equity decreases Assets decrease Assets increase Liabilities increase by $10,000. (Select all that apply.)A bank has the following balance sheet. It expects a net deposit drain of $500,000. Assets Liabilities and Equity Cash $300,000 Deposits $3,115,000 Loans 2,000,000 Equity 385,000 Securities 1,200,000 Total Asset $3,500,000 Total Liabilities and Equity $3,500,000 What is a net deposit drain and why is it of concern for the bank? Show the bank’s balance sheet if it uses stored liquidity to offset the expected drain.Based on the information provided below about banks A and B, compute for each bank its return on assets (ROA), return on equity (ROE) and Equity Multiplier. Show your work. a. Bank A has net profit after taxes of $2.38 million and the balance sheet below: Bank A (in millions) Assets Liabilities Reserves $10 Deposits $100 Loans $80 Borrowing $15 Securities $50 Bank Capital $25 b. Bank B has net profit after taxes of $1 million and the balance sheet below: Bank B (in millions) Assets Liabilities Reserves $8 Deposits $75.0 Loans $60 Borrowing $5.0 Securities $22 Bank Capital $10.0
- Of the following, what would be classified as an asset, liability, and equity on a bank's balance sheet? Investment Securities- $23,000 •Demand Deposits- $19,000 •Now Accounts- $89,000 •Cash and Due from Banks- $9,000 •Retail CDs- $28,000 •Long-Term Debt- $19,000 •Reverse Repos- 42,000 •Loans- $90,000 •Fixed Assets- $15,000 •Other Assets- $4,000 •Paid-In Capital- $4,000 •Retained Earnings- $12,000 •Common Stock- $12,000 •Provision for Loan Losses- $2,000Use the information presented in Northeastern Mutual Bank's balance sheet to answer the following questions. Bank's Balance Sheet Assets Liabilities and Owners' Equity Reserves $100 Deposits $1,000 Loans $500 Debt $50 Securities $400 Capital (owners' equity) -$50 Suppose the owners of the bank contribute an additional $125 from their own funds and use it to buy securities in the name of the bank. This would increase the securities account and the account. This would also bring the leverage ratio from its initial value of to a new value of Which of the following do bankers take into account when determining how to allocate their assets? Check all that apply. The total value of liabilities The size of the monetary base The return on each assetA company has current assets of $475,000 and current liabilities of $325,000. For each action on the right, indicate the effect on the current ratio (Increase, decrease, or no change). Analyze each action independently of the others. v The company uses cash to pay off a bank loan that is not due for A. No change. two years. B. Increase. v The company collects cash from outstanding accounts receivable. C. Decrease. v The company recognizes insurance expense from a prepaid insurance asset. v The company receives cash from issuing new shares of stock. v The company sells $9,500 of products on account. Using FIFO, the cost of goods sold for the products is $5,200. v The company acquires $12,000 of inventory on account. A Moving to another question will save this response. « » 10:33 AM arch 5/5/2021
- Swinnerton Clothing Company's balance sheet showed total current assets of $2,450, all of which were required in operations. Its current liabilities consisted of $550 of accounts payable, $300 of 5% short-term notes payable to the bank, and $165 of accrued wages and taxes. What was its net operating working capital that was financed by investors? Group of answer choices $1,892 $1,659 $1,812 $1,976 $1,735The Dinmore Company has total assets of $6.4 million, currentassets of $2.3 million, current liabilities of $2.5 million andtotal liabilities of $4.2 million.1.What is the amount of the stockholders’ equity?2.What is the amount of the net working capital?3.What is the amount of the long term assets?4.What is the amount of the long term debt?Answers onA bank has deposits of $400. It holds reserves of $50. It has purchased government bonds worth $70. It has made loans of $500. Set up a T-account balance sheet for the bank, with assets and liabilities, and calculate the banks net worth.
- The following information is available for Marston Limited. The balance in the bank account of the business 1 January 2021 was £30,000 overdrawn. During January 2021 the following transactions took place: 1. Bought Inventory for £12,000 cash 2. Sold Inventory for £27,000 cash 3. £7,000 was paid for rent in the year 4. A loan of £30,000 was taken out 5. Paid HMRC £6,000 corporation tax 6. New shares for £100,000 were issued 7. Half of the loan was repaid £15,000 8. Motor Vehicle was purchased for £1,500 9. Land was purchased for £60,000 10. Consultancy fees of £17,000 was paid 11. Interest expense of £3,000 was paid on loan Required: a. Prepare a statement of cashflow for Marston Limited for the month ended 31 January 2021, including reconciliation between opening, and closing bank balance. b. outline what it tells the managers of Marston LimitedA company has current assets of $475,000 and current liabilities of $325,000. For each action on the right, indicate the effect on the current ratio (Increase, decrease, or no change). Analyze each action independently of the others. v The company uses cash to pay off a bank loan that is not due for two years. A. No change. B. Increase, v The company collects cash from outstanding accounts receivable. C. Decrease. v The company recognizes insurance expense from a prepaid insurance asset. v The company receives cash from issuing new shares of stock. v The company sells $9,500 of products on account. Using FIFO, the cost of goods sold for the products is $5,200. v The company acquires $12,000 of inventory on account. earch 12:01 PM 5/5/2021 DELL F3 F4 F5 F6 F7 F8 F9 F10 F11 F12 PrtScr Insert Delete #3 %2$ 近Use the information presented in Southwestern Mutual Bank's balance sheet to answer the following questions. Bank's Balance Sheet Assets Liabilities and Owners' Equity Reserves $200 Deposits $1,600 Loans $800 Debt $250 Securities $1,000 Capital (owners' equity) $150 Suppose a new customer adds $100 to his account at Southwestern Mutual Bank, which the owners of the bank then use to make $100 worth of new loans. This would increase the loans account and increase the debt account. This would also bring the leverage ratio from its initial value of to a new value of Which of the following is true of the capital requirement? Check all that apply. Its intended goal is to protect the interests of the depositors. Its intended goal is to protect the interests of those who hold equity in the bank. It specifies a minimum leverage ratio for all banks.