Use the information presented in Midwestern Mutual Bank's balance sheet: Bank's Balance Sheet
Assets Liabilities and Owners' Equity
Reserves $175 Deposits $1,400
Loans $700 Debt $225
Securities $875 Capital (owners'
equity) $125
Suppose the owners of the bank borrow $100 to supplement their existing reserves. This would increase the reserves account and (increase/decrease) the (capital/debt/deposits/loans/reserv es) account. This would also bring the leverage ratio from its initial value of (14/14.8/16.1/18.2) to a new value of (14/14.8/16.1/18.2). Which of the following is true of the capital requirement?
A. The higher the percentage of assets a bank holds as loans, the higher the capital requirement.
B. It specifies a minimum leverage ratio for all banks.
C. Its intended goal is to protect the interests of those who hold equity in the bank.

In december of 2004, the company you own entered into a 20-year contract with a grain supplier for daily deliveries of grain to its hot dog bun manufacturing facility. the contract called for "10,000 pounds of grain" to be delivered to the facility at the price of $100,000 per day. until february 2017, the supplier provided processed grain which could easily be used in your manufacturing process. however, no longer wanting to absorb the cost of having the grain processed, the supplier began delivering whole grain. the supplier is arguing that the contract does not specify the type of grain that would be supplied and that it has not breached the contract. your company is arguing that the supplier has an onsite processing plant and processed grain was implicit to the terms of the contract. over the remaining term of the contract, reshipping and having the grain processed would cost your company approximately $10,000,000, opposed to a cost of around $1,000,000 to the supplier. after speaking with in-house counsel, it was estimated that litigation would cost the company several million dollars and last for years. weighing the costs of litigation, along with possible ambiguity in the contract, what are three options you could take to resolve the dispute? which would be the best option for your business and why?