Staples Balance Sheet Assets Inventory Receivables Other current Assets $458,355 $1,124,642 $203,143 Total Current Assets $1,786,140 Fixed Assets $852,722 Total Assets Total Liabilities Equity $2,638,862 Liabilities and Equity Current Liabilities Long-term Debt $982,480 1998 561,897 $1,544,377 1,094,485 $2,638,862 $1,340,432 $221,836 $501,832 $2,064,100 $1,115,166 $3,179,266 $1,265,332 $1,522,380 1,656,886 $3,179,266 1999 257,048 Staples Income Statement Sales Lest Cost of Sales Gross Profit Less: Operating Expense Operating Income Interest Income before taxes Less: Taxes Net Income 1998 1999 5,732,145 7,123,189 4,377,690 5,396,923 $1,354,45 $1,726,26 1,076,793 1,402,635 $277,662 $323,631 21,955 17,37 255,707 306,261 87,793 120,891 $167,914 $185,370

Describe how a bank makes a profit with its securities trading account. What are the risks?

is a financial product that allows an individual to lend their money to a bank A and be paid an interest rate for doing so.

5. How will you treat Bank Overdraft in a Cash Flow Statement? (A) Cash Flow from Operating Activities' (B) Cash Flow from Investing Activities {C) Cash Equivalent (D) Cash Flow from Financing Activities.

b) Why is the risk-adjusted return on capital (RAROC) an important tool in credit risk management for commercial banks?

Which of the following would not represent a financing activity? a. Borrowing money from a bank to finance the purchase of new equipment. b. An investment of financial capital by the owners. c. Paying dividends to shareholders. d. Collecting cash from customers. X

Which statement best describes the role of a credit agency? OIt tracks the use of credit for lenders. It predicts future earning potential for lenders. OIt teaches how to make smart financial decisions. OIt shows how saving money makes financial sense.

If a company is worried about having enough cash to pay interest to their bondholders, rent to their landlords and wages to their employees. they are having:a. Solvency issuesb. Liquidity issuesc. Duration matching issues

A bank that grants loans to firms in a many different lines of business:  will increase its information cost and decrease its credit risk will increase both its information cost and its credit risk will decrease its information cost and decerase its credit risk will decrease its information costs and increase its credit risk

what are the methods to maximize the use of credit card/s as financial leverage in your business?