The reason for the creation of the savings institution.

Question

Want to see more full solutions like this?

Answer 1

Question

Chapter 14, Problem 1DYU

Summary Introduction

To discuss: The reason for the creation of the savings institution.

Expert Solution & Answer

Explanation of Solution

The savings institution was started during the period of 1800’s for helping the commercial banks that serves the essentials of a business than the needs of an individual. Thus, firstly the savings institution has pooled the savings of an individual and made them to make investment in mortgages and securities and it was the main reason for creating the savings institution.

However, at present the savings institution performs services like the commercial banks and their primary goal is to concentrate on the residential mortgage lending and other household financial services.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Students have asked these similar questions

Stevens Textile Corporation's 2019 financial statements are shown below Balance Sheet as of December 31, 2019 (Thousands of Dollars) Cash $ 1,080 Accounts payable $ 4,320 Receivables 6,480 Accruals 2,880 Inventories 9,000 Line of credit 0 Total current assets $16,560 Notes payable 2,100 Net fixed assets 12,600 Total current liabilities $ 9,300 Mortgage bonds 3,500 Common stock 3,500 Retained earnings 12,860 Total assets $29,160 Total liabilities and equity $29,160 Income Statement for December 31, 2019 (Thousands of Dollars) Sales $36,000 Operating costs 34,000 Earnings before interest and taxes $ 2,000 Interest 160 Pre-tax earnings $ 1,840 Taxes (25%) 460 Net income $ 1,380 Dividends (40%) $ 552 Addition to retained earnings $ 828 Stevens grew rapidly in 2019 and financed the growth with notes payable and long-term bonds. Stevens expects sales to grow by 20% in the next year but will finance…

At year-end 2019, Wallace Landscaping’s total assets were $2.30 million, and its accounts payable were $430,000. Sales, which in 2019 were $2.9 million, are expected to increase by 20% in 2020. Total assets and accounts payable are proportional to sales, and that relationship will be maintained. Wallace typically uses no current liabilities other than accounts payable. Common stock amounted to $630,000 in 2019, and retained earnings were $330,000. Wallace has arranged to sell $180,000 of new common stock in 2020 to meet some of its financing needs. The remainder of its financing needs will be met by issuing new long-term debt at the end of 2020. (Because the debt is added at the end of the year, there will be no additional interest expense due to the new debt.) Its net profit margin on sales is 5%, and 50% of earnings will be paid out as dividends. What was Wallace's total long-term debt in 2019? Round your answer to the nearest dollar. $ What were Wallace's total liabilities in…

Solve quickly

Answer 2

Question

Chapter 14, Problem 1DYU

Summary Introduction

To discuss: The reason for the creation of the savings institution.

Expert Solution & Answer

Explanation of Solution

The savings institution was started during the period of 1800’s for helping the commercial banks that serves the essentials of a business than the needs of an individual. Thus, firstly the savings institution has pooled the savings of an individual and made them to make investment in mortgages and securities and it was the main reason for creating the savings institution.

However, at present the savings institution performs services like the commercial banks and their primary goal is to concentrate on the residential mortgage lending and other household financial services.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 3

Question

Chapter 14, Problem 1DYU

Summary Introduction

To discuss: The reason for the creation of the savings institution.

Expert Solution & Answer

Explanation of Solution

The savings institution was started during the period of 1800’s for helping the commercial banks that serves the essentials of a business than the needs of an individual. Thus, firstly the savings institution has pooled the savings of an individual and made them to make investment in mortgages and securities and it was the main reason for creating the savings institution.

However, at present the savings institution performs services like the commercial banks and their primary goal is to concentrate on the residential mortgage lending and other household financial services.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 4

Question

Chapter 14, Problem 1DYU

Summary Introduction

To discuss: The reason for the creation of the savings institution.

Expert Solution & Answer

Explanation of Solution

The savings institution was started during the period of 1800’s for helping the commercial banks that serves the essentials of a business than the needs of an individual. Thus, firstly the savings institution has pooled the savings of an individual and made them to make investment in mortgages and securities and it was the main reason for creating the savings institution.

However, at present the savings institution performs services like the commercial banks and their primary goal is to concentrate on the residential mortgage lending and other household financial services.

Want to see more full solutions like this?

Subscribe now to access step-by-step solutions to millions of textbook problems written by subject matter experts!

Answer 5

Chapter 14, Problem 1DYU

Summary Introduction

To discuss: The reason for the creation of the savings institution.

Expert Solution & Answer

Explanation of Solution

The savings institution was started during the period of 1800’s for helping the commercial banks that serves the essentials of a business than the needs of an individual. Thus, firstly the savings institution has pooled the savings of an individual and made them to make investment in mortgages and securities and it was the main reason for creating the savings institution.

However, at present the savings institution performs services like the commercial banks and their primary goal is to concentrate on the residential mortgage lending and other household financial services.

Answer 6

Chapter 14, Problem 1DYU

Summary Introduction

To discuss: The reason for the creation of the savings institution.

Expert Solution & Answer

Explanation of Solution

The savings institution was started during the period of 1800’s for helping the commercial banks that serves the essentials of a business than the needs of an individual. Thus, firstly the savings institution has pooled the savings of an individual and made them to make investment in mortgages and securities and it was the main reason for creating the savings institution.

However, at present the savings institution performs services like the commercial banks and their primary goal is to concentrate on the residential mortgage lending and other household financial services.

Answer 7

Chapter 14, Problem 1DYU

Summary Introduction

To discuss: The reason for the creation of the savings institution.

Answer 8

Expert Solution & Answer

Explanation of Solution

The savings institution was started during the period of 1800’s for helping the commercial banks that serves the essentials of a business than the needs of an individual. Thus, firstly the savings institution has pooled the savings of an individual and made them to make investment in mortgages and securities and it was the main reason for creating the savings institution.

However, at present the savings institution performs services like the commercial banks and their primary goal is to concentrate on the residential mortgage lending and other household financial services.