In business, goodwill is recorded as an intangible asset on the acquiring company's balance sheet under the long-term assets account.
Business refers to the activity of creating, buying, and reselling goods to support oneself financially. The business owner is responsible for all obligations incurred by the business because the business entity is not legally distinguished from the owner by the use of the business name.
In the event that a business accumulates debt, creditors can seize the owner's personal assets. Corporate tax rates are not allowed in a corporate structure. All business income is subject to the owner's personal tax.
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a landscaping business is bidding a job that requires 3 trees at $150 each, 5 large bushes at $45 each, 2 dozen roses at $19 each rose, and 3 dozen assorted flowers at $30 each dozen. based on the prices and the labor rates and production rates shown above, what is the cost of doing this job? no taxes, mark-ups, or overhead cost are to be included.
Not all aspects of perfect competition include product differentiation. Perfect competition includes a lot of buyers and sellers, price-taking behavior, and flexibility of entry and exit for buyers.
What is Perfect Competition?Producers and consumers both take prices in a market with perfect competition. This indicates that the choices made by individual producers and customers about the production and consumption of the thing or service have no bearing on the market price of the good or service.An quantity of knowledgeable buyers and sellers, the absence of monopolies, and the price-taking nature of each firm are characteristics of a perfectly competitive market.If both producers and consumers are price-takers, then the market is totally competitive. The lack of a sizable market share prevents price-takers from having an impact on the price of goods.No corporation has a sizable market share, the industry output is standardized, and there are no restrictions on entry or exit—these are the three main criteria of perfect competition.Marginal revenue and marginal cost must match for there to be efficient market equilibrium in a perfect market.To Learn more About Perfect competition refer to:
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What is important to learn during customer interactions?
It is crucial to learn how to generate satisfying customer experiences while upholding your company's culture throughout customer interactions if you want to succeed.
What makes customer interactions crucial?Customer interactions are a significant source of data. They may help teams understand the issues that customers are experiencing, how to make consumers happier, but what must be done that improve their experience in general.
What constitutes a positive customer encounter?However, the fundamentals of successful customer engagement continue to be constant. Consider your customers, be truthful with them, address their worries, fix issues right away, and keep them interested in your company. After all, they are your allies in success.
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which one of the following management techniques is likely to best offset the risk of long-run exposure to receivables denominated in a particular foreign currency? a) borrow money in the foreign currency in question. b) lend money in the foreign currency in question. c) rely on the federal reserve board to enact monetary policy favorable to your exposure risk. d) none of the above group of answer choices a b c d
The upcoming management strategies include Borrowing money in the questioned foreign currency is the ideal course of action (a).
Which four sorts of money are there?According to economists, there are four basic sorts of money: business dosh, custodial money, fiat money, and commodity money. Commodity money is money that derives its worth from the commodities from which it is created.
What is money to you?Money is a centralized, widely used, acknowledged form of trade that makes it easier to exchange goods and services. In an economy, money serves as a means of trade for a variety of products and services. Governments and nations have different monetary systems.
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according to conflict theory, the nuclear family facilitates exploitation a. by making geographic mobility possible. b. by exploiting the working class whose products it consumes. c. through the use of nannies and domestic workers. d. through a sexual division of labor within the home.
According to conflict theory, the nuclear family facilitates exploitation by making geographic mobility possible.
Thus, the correct option is A.
What is conflict theory?According to conflict theory, social order is maintained by dominance and power rather than agreement and conformity.
According to conflict theory, those who are powerful and wealthy want to hang onto their positions by any means necessary, most notably through suppressing the weak and defenseless.
The core tenet of conflict theory is that social actors will compete with one another to amass the greatest amount of wealth and power.
Many different social problems, such as wars, revolutions, poverty, prejudice, and domestic violence, have been attempted to be explained by conflict theory.
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What is an important factor or factors to consider when choosing a mortgage?
When choosing a loan, cost is among the most crucial considerations. You should take the interest rate into account.
Where Is a Mortgage Available?You can obtain a mortgage loan from a variety of businesses. Consider using an online lender, a mortgage broker that works with several lenders, or a local bank branch where you have a savings account.
The loan originators that accept your application and guide you through the entire mortgage process from application to closing are lenders. After your mortgage is closed, the loan may be transferred from the loan originator to a different business, which will be iresponsibility of obtaining payments from you.
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Companies use the (1) (2) cycle to evaluate and improve performance. (Enter only one word per blank.)
Companies use the variance, analysis cycle to evaluate and improve performance.
What is a performance management cycle?
The performance management cycle is a concept that enables management and employees to more successfully complete company goals through a structured process of employee growth.
The planning, monitoring, assessing, and rewarding steps of the performance management cycle are a more condensed, continuous four-step procedure that is used as part of the performance management process or strategy.
Using this method has the advantages of increased competitiveness, more structural flexibility, and greater employee motivation.
The planning, monitoring, evaluating, and rewarding phases of the performance management cycle are its four main steps.
The typical strategy lasts for a year and ends with a performance evaluation, despite the fact that many businesses have found that more frequent check-ins would improve employee performance.
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the baldwin company currently has the following balances on their balance sheet: total assets $157,206 total liabilities $68,908 retained earnings $76,475 suppose next year the baldwin company generates $44,200 in net profit, pays $12,000 in dividends, total assets increase by $55,000, and total liabilities remain unchanged. what will ending baldwins balance in common stock be next year?
If the baldwin company currently has the following balances on their balance sheet: The ending baldwins balance in common stock next year is $99,023.
How to find the ending balance in common stock?First step is to find the total assets
Total assets = $157,206 + $55,000
Total assets = $212,206
Second step is to find the total equity
Total equity = $212,206 - $68.908
Total equity =$143,298
Third step is to find the common stock
Common stock = $143,298 -$76,475
Common stock = $66,823
Now let find the ending balance in common stock
Ending balance in common stock = $66,823 + $44,200 - $12,000
Ending balance in common stock = $99,023
Therefore the ending balance in common stock is $99,023.
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What is clarity of outcome in agile?
Agility's fundamental definition of "open of result" is "clear of consciousness" (Mindfulness). I f, when we arrive at the "destination," we have no clue where we are heading.
What does Agile mindset encompasses?The agile mindset is a way of thinking that emphasizes comprehension, cooperation, learning, and keeping flexible in order to achieve high-performing results. By combining the agile approach with processes and tools, teams are able to respond to change and provide incremental value to their clients.
What are the three levels of focus for an agile coach?This introducing and promoting their efforts on one or two "running" teams. They are acquiring foundational facilitating, mentoring, or training skills in addition to conscious communications skills.
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an investor bought investment property at the beach for $35,000 per acre. twenty years later she sold the 100-acre lot to a developer for a profit, and paid $1.05 million in taxes as a result of the sale. if capital gains are taxed at 15% and her marginal tax bracket is 35%, what was the price paid by the developer for the lot?
The price paid by the developer for the lot is $10.5 million.
What is capital gain?The profit made from the selling of an asset, such as stocks, bonds, or real estate, is known as a capital gain. When an asset's selling price is higher than its original acquisition price, a capital gain is realized.
Capital gain tax is levied on gain from sale . We have been given the tax amount paid for the 100 acre lot.
Tax amount = Gain on sale * Capital gain rate
1.05 million =Gain on sale *0.15
Gain = 1.05/.15
Gain = $ 7 million
Cost = 35000*100
= 3,500,00
or 3.5 million
Price paid by developer = Cost + gain on sale
=3.5+7
= 10.5 million
Therefore, price paid by developer is 10.5 million.
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A complete system of quality control: A. Must include both variable and attribute measurements B. Involves a zero defects philosophy C. Requires a continuous scale for measurement of defects D. Is defined by critical control points, inspectors, measurements, costs, and other considerations
A complete system of quality control is defined by critical control points, inspectors, measurements, costs, and other considerations. Hence, option D is appropriate.
What is the meaning of quality control?Quality control is a procedure whereby organizations examine the caliber of all production-related aspects. Quality control, according to ISO 9000, is "an element of management focused on meeting quality requirements."
A technique or collection of procedures known as quality control (QC) is designed to make sure that a service or product is made by a specified set of quality standards or that it satisfies the needs of the client and customer. QC and quality assurance are not the same things, albeit they are related.
Hence, option D is correct.
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suppose that real gdp is greater than the full-employment output level. initially, this seemed like a good thing. however, it has resulted in a higher rate of inflation. if the central bank decides to implement monetary policy to control the higher inflation, what will happen to real gdp and unemployment in the short run?
Contractionary monetary policy will reduce the GDP and employment in the short-run. Unemployment will rise.
What is the operation of a contractionary monetary policy?Modern central banks' influence over higher base interest rates or other mechanisms that expand the money supply are what propel contractionary monetary policy. By reducing the amount of active money circulating in the economy, inflation is to be decreased. The overall demand for products and services in the economy is reduced by the decline in consumer and company investment spending. Businesses are less likely to increase staff hiring and spend more on other resources when production declines. The Federal Reserve's three primary methods for reducing the money supply are raising interest rates, raising the minimum reserves required of banks, and selling government securities.
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What are 4 main sources of revenue for the federal government?
The vast majority of federal revenue comes from individual and corporate income taxes, as well as social insurance taxes.
What are the sources of revenue of federal government?Individual taxpayers, small businesses, and corporations contribute the majority of the revenue collected by the United States government. Additional revenue sources include excise tax, estate tax, and other taxes and fees.The Goods and Services Tax (GST), income tax, corporation tax, non-tax revenues, and union excise duties are the government's five major revenue sources.The federal government's single largest source of revenue is referred to as taxation (or revenue). Other revenue sources for the government exist (such as fees and interest), but they pale in comparison to the taxes we all pay. There are three types of taxes: Individuals are taxed on their earnings.To learn more about federal revenue refer to :
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a company wants to have $20,000 at the beginning of each 6-month period for the next 4 1 2 years. if an annuity is set up for this purpose, how much must be invested now if the annuity earns 6.07%, compounded semiannually?
So, when annuities earns 6.07% compounded semiannually, a corporation invests $155,560.
What is meaning by a company?To operate and administer an industrial or commercial enterprise, a group of individuals can create a legal body known as a corporation. For tax & financial liability concerns, a corporation may well be established up in a number of ways depending just on corporate law of its jurisdiction. There are three primary types of business entities: corporations, partnerships, and sole proprietorships. Each has unique benefits and downsides.
Any business created in accordance with the 2013 Companies Act is referred to as a "company." The term "company" is typically associated with a private limited corporation, but it can also broadly used to describe a sole proprietorship, a limited liability corporation, or even a section 8 company.
What is the purpose of a company?A purpose statement sums up your company's motivations, which go beyond just turning a profit. . It also demonstrates how successfully your service or product helps the customers you deal with. Once your purpose is clear, you'll need a set of goals to help you achieve it.
Briefing:The interest rate for the year is 6.07%. It is annually compounded.
The number of periods is 2*4.5=9 semesters.
The interest rate per period is i=0.0604/2=0.0302.
The annuity factor is:
An=(1-(1+i)^(-n))/i
=(1-(1.0302)^(-9))/0.0302
=(1-0.7651)/0.0302
An=0.2349/0.0302=7.778
The money that must be invested now to receive $20,000 over 4.5 years is as follows:
C=P×An
=20000×7.778
=$155,560
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Viules Onboarding Tool Video: MKTG 3853 Lecture to Vivint Onboarding Tool Conte Housing in der orations 1. The World Bank mostly gives loans to: A Update Apple ID Settings Some account services will ne avaient you sain agal Drive 365 a the economically developed nations of the world O b. the economically developing nations of the world Evaluations brary Writing Center D Question 2 1 pts ASSO matics Learn- cess Center 2. The principle of comparative advantage helps to explain a nation's exports and imports: False Question 3 1 pts 3. The current account component of the balance of payments includes which of the following: O a Exports and imports of goods and services. b. Government borrowing c. Foreign investment. d. All of the above e. None of the above Visit Onboarding Tool Contrm Housing I Veint in der 4. Video MKTG 3653 Lecture 10 Vivint Onboarding Tos One of the main outcomes of the GATT has been: Update Apple ID Se Some account service available until you sig O a. The increase in quota restrictions among member countries. b. The reduction in tariffs among member countries. c. The increase of tariffs among member countries. Od. The establishment of trade barriers among member countries. D Questions 1 pts 5. In trying to deal with a high import tariff, the exporter might: O a. Ship unassembled products, b. Build a factory abroad. O c. Both of the above are true. Question 6 1 pts 6. For multinational companies, way(s) to overcome the effects of quota barriers to international trade is (are): a. Produce inside the host country. b. Sell higher priced (hence higher margin) products. 7. A major goal of the IMF (International Monetary Fund) is to: Update Apple ID Settings Some account services will ble until you sign in O a Help economically developing countries with their temporary balance of payment problems so they can continue to trade. O b. To pass judgment on international trade disputes. cAll of the above are true. D Question 8 1 pts 8. Government subsidies given to domestic forms are designed primarily a. To increase competition between domestic firms so that higher quality products may be produced b. To improve international competitiveness of domestic exporters by reducing their cost OcTo help domestic forms import products from the world market lie. subsidize their purchases). Question 9 1 pts 9. The Foreign Corrupt Practices Act of 1977 intended to stop: a. Unfair competitive behavior among corporations (such as price foxing). b. Hostage-taking by foreign governments. c. Environmental abuses (such as dumping of toxic waste in rivers) by multinational companies d. Payment of bribes to top foreign government officials who have policy making authority.
The Foreign Corrupt Practices Act of 1977 is a United States federal law that prohibits U.S. citizens and entities from bribing foreign government officials to benefit their business interests.
What is the Foreign Corrupt Practices Act?
Failure to establish internal controls, maintain accurate financial records, carry out enough payment audits, and implement proper anti-bribery compliance rules are a few examples of FCPA accounting infractions.
To ensure that bribes cannot be concealed, the FCPA contains two parts: anti-bribery rules and maintaining correct books, and records, as well as internal controls.
Persons with official connections to the United States and persons who act to further a breach while in the country are two major groups of people to whom the FCPA applies. Even when acting abroad, U.S. "issuers," including "domestic businesses," are subject to the FCPA.
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swisher, incorporated reports the following annual cost data for its single product: normal production level 30,000 units direct materials $ 6.40 per unit direct labor $ 3.93 per unit variable overhead $ 5.80 per unit fixed overhead $ 150,000 in total this product is normally sold for $48 per unit. if swisher increases its production to 50,000 units, while sales remain at the current 30,000-unit level, by how much would the company's income increase or decrease under variable costing? multiple choice
There will be no change in the gross margin.
The fixed costs are not absorbed into the production cost per unit when using variable costing. The income after variable costs are subtracted provides the contribution margin.
In this instance, 30,000 units were sold, which is the same as previously, and the variable cost per unit is also unchanged. Thus, the company's gross margin remains unchanged. If the business adopted absorption costing, the gross margin would vary.
Fixed manufacturing overhead is incurred when the units are produced according to variable costs. Fixed manufacturing costs are incurred under absorption costing at the point of sale of the units.
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What are the 3 indicators of economic growth?
In addition to GDP, two of the other most significant measures of economic growth are the Consumer Price Index (CPI), which measures pricing power and inflation, and the Monthly Unemployment report, including weekly non-farm payrolls.
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Which of these are long-term impacts of having a good credit history?
A. It prevents you from spending money on things you want instead of things you need
B. It lets you buy the thing you want like clothes or cellphones
C.It gives you freedom to shop around for the best deal on tech
D. It's easier to pay for major purchases like cars, houses, and education
It's easier to pay for major purchases like cars, houses, and education are long-term impacts of having a good credit history. Thus, option D is correct.
What is credit?Credit is the capacity to borrow cash and create purchase under a contract that calls for full repayment at a specific date. You typically have to start repaying higher than the value of the loan because of the interest rate.
Higher credit scores indicate that you have previously exhibited results add conduct, which may provide prospective creditors as well as lenders additional assurance when assessing a refund request. Long-term effects of having a solid credit history include making significant expenditures like automobiles, houses, and school more affordable to pay for.
Therefore, option D is the correct option.
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What is Adam Smith's main idea about trade and economic?
Smith first proposed the idea that both individuals and society as a whole would gain from free commerce. He held that both locally and internationally, governments shouldn't enact measures that obstruct free trade.
What were Adam Smith's main economic ideas?The division of labor (the notion that workers should specialize in certain jobs) and the invisible hand hypothesis (the notion that free markets coordinate themselves), three of Smith's most well-known concepts, served as the foundation for economic theory (Gross Domestic Product). Smith was a fervent supporter of capitalism, free markets, competition, and individual liberty.
Adam Smith is regarded as the founder of economics, although he contributed to the field in more ways than one. His body of work established a way of thinking that is widely acknowledged to have altered the path of human history. For instance, Smith's work emphasized the shortcomings of limiting international commerce and urged governments to loosen up on their protectionist measures.
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What are the different methods of withdrawing cash from the bank?
Most banks feature ATMs where you can use your debit card to withdraw money from your account. The ATMs at your bank are free to use, however those at other banks may require a fee.
What are the other different methods of withdrawing cash?There are several ways you can withdraw cash from a bank:
Over-the-counter withdrawal: You can ask a teller at a bank branch to take money out of your account.
App for mobile banking: Many banks have apps for mobile banking, which let you use your smartphone to withdraw money from your account. For the transaction to be successful, you might need to utilise a particular ATM.
Check: You are able to write yourself a check that you can cash at a bank or a check-cashing facility.
Cash withdrawals are possible using some banks' online banking systems. For the transaction to be successful, you might need to utilise a particular ATM.
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One characteristic of plant assets is that they are long term investment natural resources
Among all plant assets is: They are long-term investments in natural resources since they are used directly in operations or income creation.
Plant assets are long-term investments that are specifically employed to generate revenue. Plant assets always have a useful life of more than a year, and they are often used every day in the generation of revenue.
Plant assets can be divided into five groups, with the majority of them fitting into just one: office supplies. Capitalized plant assets include real estate, improvements to real estate, buildings, improvements to buildings, software, donated equipment, fixed equipment, moveable equipment, other assets, and other expenditures that fit the criteria.
Property, plant, and equipment, often known as plant assets or fixed assets; natural resources; and intangible assets; are the three main kinds of operating assets.
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How does an agile team maintain requirements every team member maintains a personal backlog of items they are working on?
The agile team keeps track of the requirements in a central location, like a wiki, jira, or whiteboard.
What is an Agile team?For an Agile team, every person required to produce the final good or service is a requirement. The team frequently consists of members from different functional areas, and depending on the project's requirements and the Agile framework used, roles may change. When using the Scrum framework, an Agile team needs a Scrum master, a product owner, and any additional team members who may be required. The scrum master, who is typically the project manager, is responsible for overseeing the project. He or she also organizes regular meetings and promotes teamwork. The product owner is accountable for making sure the finished product complies with the client's criteria. Subject matter experts and other stakeholders aren't usually considered to be members of the Agile team, despite the fact that they may contribute to the project as needed.
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opportunity costs are classified as ______ costs in project analysis.
An opportunity costs are classified as relevant costs in project analysis.
What is an opportunity costs?An opportunity cost refers to the value of what we lose when choosing between two or more options. When we decide, we feel that the choice you have made will have better results for you regardless of what you lose by making it.
As an investor, an opportunity cost means the investment choices will always have immediate and future losses or gains. In conclusion, an opportunity cost means the loss you take to make a gain, or the loss of one gain for another gain.
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which of the following is not true about reverse logistics as compared to forward logistics? distribution costs are less directly visible. forecasting is more uncertain. inventory management is not consistent. speed is often very important. pricing is dependent upon many factors.
Speed is often very important is not true about reverse logistics as compared to forward logistics.
Thus, the correct option is D.
What is reverse logistics?All actions connected to the upstream flow of goods and commodities are included in reverse logistics.
It is "the process of transporting items away from their usual final destination in order to sell them or dispose of them properly.
Activities that involve remanufacturing and refurbishment could also be categorized as reverse logistics."
It becomes even more pertinent with the advent of green supply chain management concepts and practices.
Over the past two decades, there have been a considerable increase in publications on the subject of reverse logistics.
In a White Paper titled "Reverse Logistics," which was released by the Council of Logistics Management in 1992, James R. Stock used the phrase "reverse logistics" for the first time.
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How do I track project profitability in QuickBooks Desktop?
By using project profitability, you can see how much money you are making or losing on each work or project!Each individual project can have tags applied to bills, receipts, timesheets, expenses, and incoming payments.
Can QuickBooks track profitability?Track the financial success of your project using QuickBooks Online projects.From a single dashboard, you can add project income, expenses, and labor expenses, add previous transactions to new projects, and run project-specific reports. Accountant and QuickBooks Online Plus are the only two products that support projects.With the additional ability to handle inventory and track profitability by project, QuickBooks Online Plus offers you the features of Simple Start and Essentials.In addition to a few additional features with increased operation, QuickBooks Online Advanced has all the capabilities of QuickBooks Online Plus.You'll probably need to upgrade to Advanced as your firm develops.In contrast to Plus, which has a maximum user capacity of just 5, it supports up to 25 users.
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Standard quantity of direct materials × standard price of direct materials is the calculation to compute ________.
Standard quantity of direct materials × standard price of direct materials is the calculation to compute the standard cost of direct materials.
Direct materials means a material used for manufacturing and forming a major portion of a product. A cost is predetermined for the direct material i.e. Standard Cost for Direct Material. The following are the three important standards fixed for direct material: quality standard, quantity standard and price standard.
Standard cost is an estimated cost determined by the company for the production of goods and services or operating under normal circumstances.
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What are the 3 disadvantages of trade?
Tariffs and other restrictions on trade increase the cost of goods and services for American firms and consumers while reducing their supply, which lowers income, employment, and economic production.
What impact does commerce have on the economy?Trade is essential to the prosperity of America because it boosts economic growth, supports domestically produced excellent employment, raises living standards, and enables citizens to sustain their families with reasonably priced goods and services.
good or negative in a trade?The environment can be impacted by trade in both good and bad ways. Economic expansion brought about by increased commerce may have a clear negative effect on the environment by raising pollution levels or deteriorating natural resources.
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many investors prefer to receive variable annuity payments under the straight-life payout option because it: qid: 3571185 mark for review a is the most conservative method for receiving payments b allows for a beneficiary for the entire payout period c provides the maximum cash flow of all payout options d provides an equal amount each month for the investor's lifetime
A: Investors prefer to receive variable annuity payments under the straight-life payout option because it is the most conservative method for receiving payments.
Variable annuity payments under the straight-life payout option provide the largest guaranteed payments to the investor, as the investor will receive the same amount each month for the duration of their lifetime.
This option provides a more consistent and reliable income than other payout options which may be more volatile or have a shorter payout period.
Additionally, the straight-life option does not allow for a beneficiary for the entire payout period, meaning that the investor will not be able to pass the payments onto their beneficiaries after their death. This option can be beneficial to those who want to be assured of a consistent income stream during their lifetime without having to worry about their beneficiaries.
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What are 3 Agile practices and how do you ensure they are implemented in the teams you work with?
Reduce the complexity of reporting and editing for smooth campaigns. Take control of billable hours to increase client satisfaction.
What is client satisfaction?Customer satisfaction is a metric that gauges how satisfied a company's clients are with its products, services, and abilities.
Survey and rating data on customer satisfaction can help a company decide how best to modify or enhance its products and services.
Customer happiness needs to come first for businesses. All types of organizations, including for-profit and nonprofit entities, governmental organizations, service providers, retail and wholesale firms, and commercial enterprises, are subject to this provision.
Businesses shouldn't assume they know what the public wants. Instead, it's important to understand the viewpoint of the client by using methods like polling, focus groups, and customer surveys.
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What are the 2 types of savings accounts available?
There are nonidentical types of savings accounts to choose from, and they aren't all suchlike. The options involve traditional savings accounts and high- yield savings accounts.
Traditional savings accounts are what you may directly suppose of when you consider where to save. High- yield savings accounts are FDIC or NCUA assured, just like traditional savings accounts.
Traditional savings accounts typically allow you to frame up to six yearly recessions( not including ATM recessions or in- person recessions at a branch) before incurring a disadvantage. High- yield savings accounts generally set up at online banks, neo banks, and online credence junctions are savings accounts that extend a advanced APY assimilated to regular savings accounts.
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suppose that serendipity bank has excess reserves of $8,000 and checkable deposits of $150,000. if the reserve ratio is 20 percent, what is the size of the bank's actual reserves? third national bank has reserves of $20,000 and checkable deposits of $100,000. the reserve ratio is 20 percent. households deposit $5,000 in currency into the bank and that currency is added to reserves. what level of excess reserves does the bank now have?
$38000 is the size of bank's actual reserves.
What exactly are actual reserves?
The sums the bank actually has on hand at any particular time are known as actual reserves. This includes funds held both at the Federal Reserve and in the bank's safe. The quantity that banks are obligated to retain may not match this amount. Calculating the bank's necessary reserves is the first stage. This is the same as the product of checkable deposits and the required reserve ratio (in decimal form). Reserves needed equal 0.20 times $150,000, or $30,000. The real reserves are calculated in the subsequent phase. The total of the necessary and surplus reserves is shown here. Actual reserves equal $30,000 + $8,000 = $38,000 (necessary reserves less extra reserves).
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