Financial Accounting
Financial Accounting
17th Edition
ISBN: 9781259692390
Author: Jan Williams, Susan Haka, Mark S Bettner, Joseph V Carcello
Publisher: McGraw-Hill Education
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Chapter 12, Problem 2PA

a.

To determine

Prepare the income statement of Incorporation SS for the year ended December 31, 2018, along with the earnings per share data.

b.

To determine

Prepare statement of retained earnings of Incorporation SS for the year ended December 31, 2018.

c.

To determine

Compute the amount of common dividend per share.

d.

To determine

Discuss whether the $8.00 EPS in 2019 is favorable or unfavorable to the same figure in 2018, and in comparison to $12.25 (Refer Table-1) in 2018.

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Total reserves: Value $40 billion Transactions deposits: $750 billion Cash held by public: Required reserve ratio: $450 billion 0.05 a. How large is the money supply (M1)? b. Are the banks fully utilizing their lending capacity? Banks currently have Now assume that the public deposited another $10 billion in cash in transactions accounts. c. What would happen to the money supply initially (before any lending takes place)? Assuming the $10 billion in cash is not new money in the system, M1 will 69 1,200 billion billion in excess 69 $ 2.5 reserves. 30 billion not change d. How much would the total lending capacity of the banking system be after this portfolio switch? $ 30 billion e. How large would the money supply be if the banks fully utilized their lending capacity? f. What three steps could the Fed take to offset the potential growth in M1? Increase Increase Sell reserve requirements the discount rate bonds HA
What is the profit margin on these general accounting question?
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