FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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If a business firm has assets worth $170,000 and liabilities that total $40,000 what is the value of the owner's equity? Show you work for full credit.
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- Select all that apply Show the effect of recording the borrowing of $10,000 from a bank on the accounting equation. Stockholders' equity increases Stockholders' equity decreases Assets decrease Assets increase Liabilities increase by $10,000. (Select all that apply.)arrow_forwardThink through all the assets you own. What would you say is your approximate “net worth” if you were a business? Calculate this as a simple financial statement, with items (or categories) listed along with their approximate value; the list should contain at least four items or categories. (As a reminder, this is absolutely separate from any evaluation of a person’s worth in the ways that matter most in life!)arrow_forwardYou are the new CFO of Risk Surfing Ltd, which has current assets of $7,920, net fixed assets of $17,700, current liabilities of $4,580 and long-term debts of $5,890. Required: What are the three important questions of corporate finance you will need to address? Please briefly explain them and indicate how they are related to the areas in the balance sheet of a company. Calculate owners’ equity and build a balance sheet for the company? How much is net working capital of the company? Calculate the return on assets of the company given that Return on Equity is 30%? What is the PE of the company total number of ordinary share outstanding of the companies is 2,000 and market price of each share is $12? NOTE: ONLY NEED 4 AND 5 PART TO BE ANSWERED. NO NEED OF RESTarrow_forward
- The following provides a list of transactions and a list of business activities.Transactions Business Activities1. _________Borrow from the bank. a. Financing2. _________Provide services to customers. b. Investing3. _________Issue common stock to investors. c. Operating4. _________Purchase land.5. _________Pay rent for the current period.6. _________Pay dividends to stockholders.7. _________Purchase building.Required:Match the transaction with the business activity by indicating the letter that corresponds to the appropriate business activity.arrow_forwardAlpha Company has assets of $634,000, llabilities of $267,000, and equity of $367,000. It buys office equipment on credit for $92,000. What would be the effects of this transaction on the accounting equation? O Multiple Choice Assets increase by $92,000 and expenses decrease by $92,000. Liabilities increase by $92,000 and expenses decrease by $92,000. Assets increase by $92,000 and expenses increase by $92,000. Assets increase by $92,000 and liabilities increase by $92,000. Assets decrease by $92,000 and expenses decrease by $92,000.arrow_forward‘The statement of financial position shows how much a business is worth.’ Do you agree with this statement? Explain the reasons for your response.arrow_forward
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