reported total equity of $128,000. During the current year, total revenues were $106,000 while total expenses were $95,500. Also, during the current year the company paid $30,000 in dividends. No other changes in equity occurred during the year. The change in total equity during the year was:

3. describe the purpose of the sec. (1-4 sentences. 2.0 points)

The purpose of safety stock is to: a. eliminate the possibility of a stockout. b. control the likelihood of a stockout due to variable demand and/or lead time. c. eliminate the likelihood of a stockout due to erroneous inventory tally. d. protect the firm from a sudden decrease in demand. e. replace failed units with good ones.

Abank has $132,000 in excess reserves and the required reserve ratio is 11 percent. this means the bank could have in checkable deposit liabilities and in (total) reserves.