To obtain financing for her hair salon, Valeri asked you toprepare a balance sheet for her business. When she sees it,she is disappointed that the assets exclude a value for herlist of loyal customers. What can you tell her to explainwhy this “asset” has been excluded? Knowing this, whatshould she tell her banker when they meet next week?
Q: Suppose that you have been given a job as an intern at Issac Aircams, a company that manufactures…
A: Cost is defined as the amount of actual or attributable expenditure related to the product,…
Q: Mandy is an aspiring entrepreneur and your friend. She is having difficulty understanding the…
A: Financial statements are defined as those statements which contain the written records of the…
Q: As a CEO of Gempak Gempur Sdn Bhd, Datuk Ikhwan would like to apply a line of credit for home…
A: Mr. Datuk Ikwan's want to some line of credit from the bank which are needed for the renovation of…
Q: Colleen Fernandez, president of Rhino Enterprises, applied for a $175,000 loan from First Federal…
A: 1. No, Colleen Fernandez is not acting in a professional manner. Omitting the financial statements…
Q: Your doctor got to know that you are studying accounting and he has bought some shares from XYZ…
A: Understandability is one of the four qualitative characteristics of financial accounting…
Q: Mary owns and operates a fabric shop. Mary needs to borrow money to expand; therefore, she prepared…
A: Reliability Principle The reliability principle is an accounting concept where transactions are…
Q: Assume you work as an assistant accountant in the head office of a DVD movie kiosk business,similar…
A: Depreciation means decline in the estimation of benefit inside its valuable life because of mileage…
Q: You have graduated from Holmes Institute with a Master’s Degree in Professional Accounting, and…
A: The type of business structure one chooses is very important as it affects the whole day to day…
Q: Assume you are the accounting manager for Logan’s Landscaping & Design. On December 1, 2013, Logan…
A: Under accrual concept, revenue should be recognized only when it is earned not only when cash is…
Q: Advise Clara Hammond and Never-Do-Well. w
A:
Q: Madeline is the sole proprietor of Maddie's Fine Art and wants to know whether she will have enough…
A: The question is multiple choice question. Required Choose the Correct Option.
Q: Assume you are the accounting manager for Logan’s Landscaping & Design. On December 1, 2013, Logan…
A: The correct answer for the above motioned question is given in the following steps
Q: Mr. Tee ordered two computers which he is going to receive after 1 month. He is going to pay for the…
A: Accounting principles are the general rules and guidelines that organizations are required to follow…
Q: The owner of a small furniture manufacturer is retiring and is interested in selling the business to…
A: The employees can get finance from different sources, Some sources are- Loans from bank More…
Q: Your grandmother is visiting Guadalajara to start a new retirement life. She is interested in…
A: Cash Flow Statement and the Balance Sheet are financial statements; these statements are prepared to…
Q: Madeline is the sole proprietor of Maddie's Fine Art and wants to know whether she will have enough…
A: Madeline has $1000 in her bank account. And Owes to a vendor =$500 Current Asset = $1000 Current…
Q: Clara Hammond persuaded her daughter, Never-Do-Well to give up her secretarial work and read BSc…
A: As within the initial case, there was no legal agreement between Clara Hammond and her female…
Q: Sadie Hawkins owns The Education Supply Center, a small store that sells educational supplies.…
A: Balance sheet is the financial statement which is prepared to know the financial position of an…
Q: Shonta started a graphic design firm a year ago.The business has done well, but it needs a lotmore…
A: Bank is a financial institution which accept the funds from the depositors and use that fund to…
Q: After investigating the different forms of business organization, Natalie Koebel decides to operate…
A: The question is based on the concept of Accounting theory. As per the Bartleby guidelines we are…
Q: Eric is going to set up sole trader business as Decorator. he knows that he will be responsible for…
A: Business refers to an enterprise or the firm who is involved or engaged in performing the commercial…
Q: Clara Hammond persuaded her daughter, Never-Do-Well to give up her secretarial work and read BSc…
A: The area of law for the above case would contract law as there is some contractual agreement or…
Q: For each of the assertions of occurrence, completeness and accuracy, identify a procedure(s) you…
A: Auditor procedures are those procedures that are used to obtain the relevant evidences. It assists…
Q: leth Adriano, who plans to go abroad, is selling her mini-donut business. Her friend, Benita Solido…
A: Journal entry is the practice of recording commercial transactions for the first time in the books…
Q: Due to the current difficult economic conditions, people have had to face many difficulties. N Smile…
A: Accounting equation is the basis of double entry accounting system. The single transaction affects…
Q: Noora is considering selling her store’s old equipment to Rashid. Rashid would like to pay 1000 Rial…
A: Historical Cost:-As per this principle according to the US GAAP, assets should be recorded in the…
Q: aren and Yanique are opening a jewellery store with no competition in the area from which they…
A: 1) Advantages of Corporate form of business. (a) Easy to Raise Capital - In the corporation…
Q: In early 2008, Doc and Lyn McGee formed the McGee Cake Company. Doc did all the baking, and Lyn…
A: The financial problem here is insufficient cash-flow to fund operations and support the growth of…
Q: Catherine Romanov was a loan officer who needed one last loan to make her quota for the month.…
A: Following is the answer to the given question
Q: You have graduated from Holmes Institute with a Master’s Degree in Professional Accounting, and…
A: The most common forms of different types of business structures are: 1. Sole Proprietorship 2.…
Q: They were surprised by how much the total closing costs turned out to be, particularly the amount…
A: Given is: Beth and Bob are scheduled to close on the purchase of a new home soon. They need to…
Q: ask A motivated entrepreneur, Mrs. Amanda opened her beauty salon at the beginning of March 2020…
A: S. No Financial Transaction Name of the company-Amanda Entrprises Business selected is online…
Q: Ali, the owner of the business purchased Furniture for RO 10, 000 to be used in the business. The…
A: Hi student Since there are multiple questions, we will answer only first question.
Q: based on the income statement and balance sheet of the company, will the company be successful after…
A: Financial position of a company can be determined by analyzing its statements. One of the ways to do…
Q: 4. Martha Higgins is currently trying to borrow some money from the bank. She has listed her…
A: The GAAP or Generally Accepted Accounting Principles are the accounting standards which…
Q: What will the general journal entry be for the following transaction? Mr. Smith paid his outstanding…
A: As Mr. Smith is paying his outstanding account at Choice Bakery he must already have credited a…
Q: At a recent luncheon, you were seated next to Mr. Fogle, the president of a local company that…
A: Definition: Depreciation expense: Depreciation expense is a non-cash expense, which is recorded on…
Q: Seeing your success, one of your friends, Greg Kommens, opened a cinnamon roll shop. He wants to buy…
A: Note: Since we only answer up to 3 sub-parts, we’ll answer the first 3. Please resubmit the question…
Q: e works in finance for a small manufacturing company and is working on next year’s budget. She has…
A: Company has to make the financial planning for need of funds for the short term and also long term…
Q: Phumla Ndou works as a night nurse in a hospital where she earns a monthly salary. On her days off…
A: General deduction is the deductions which are allowed to the taxpayers to reduce their total…
Q: Ima Broake is trying to expand her small business, Ima Fun Caterer. She has taken out a $10,000 loan…
A: When doing business taking too much loan create burden so loan should be within limits.
Q: ThegreatAlbertEinsteinoncesaid“Compoundinterestistheeighthwonderofthe world. He who understands it…
A: Information Provided: Principal = $500 Years = 30 Interest rate = 15% NOTE: As per our policy,…
Q: Identify whether the given situation is a consumer or business loan. Marion plans to have a…
A: A consumer loan is a loan to finance specific expenditures. A business loan is a loan specifically…
Q: You are tasked to manage your family’s financial resources. How would you practice money management?…
A: Money management is an important part which directly starts from your home itself.A person earns…
To obtain financing for her hair salon, Valeri asked you to
prepare a
she is disappointed that the assets exclude a value for her
list of loyal customers. What can you tell her to explain
why this “asset” has been excluded? Knowing this, what
should she tell her banker when they meet next week?
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
- Seeing your success, one of your friends, Greg Kommens, opened a cinnamon roll shop. He wants to buy one of your mixers, but he cannot afford to pay for the mixer for 30 days. Greg gave you a set of his most recent financial statements. What calculations should you make with the data from these statements, and what questions should you ask him after you have analyzed the statements? How will this information help you decide if you should extend credit to Greg?” Is there an alternative other than extending credit to Greg for 30 days?” “You are thinking seriously about being able to have your customers use credit cards. What are some of the advantages and disadvantages of letting your customers pay by credit card?” The following transactions occurred in June through August 2021. June 1 After much thought, you sell a mixer to Greg on credit, terms n/30, for $985 (cost of mixer $510). 30 Greg calls you. He is unable to pay the amount outstanding for…Your best friend, Anthony, approached you to invest in his business. In 2019, he started a business providing cleaning and disinfection services for offices and homes. While sales slowed down during the work-from-home period when employees work from home, he shared that this was more than offset by the rising demand for deep cleaning services from homeowners. You requested from him the latest set of financial statements. However, he asked you not to put too much focus on the financials citing the flaws and limitations in financial statements. (a) Identify the key financial statements. Describe the information reported in each of the financial statements and how they can help you in your investment decision. (b) Examine the limitations of financial statements. Discuss what other information you would request from Anthony to help your investment decision.Jane, an ambitious entrepreneur, is looking to expand her successful start-up business after one year of operation. To secure funds for this venture, she decides to approach a bank for a loan. However, the bank requests financial statements to assess the viability of her business and its ability to repay the loan. Challenge: Jane is unfamiliar with the specific financial reports required and their significance in the loan application process. She seeks guidance on which reports are essential and why they play a crucial role in demonstrating her business's financial health. Please provide a memo for her and discuss her challenge with recommendation." 11
- Can you help with question, In a minimum of 175 words. Many of us apply the time value of money in our personal lives – for example, when we invest dollars in a young child’s bank account earmarked for his or her eventual college education. Share an explanation of the time value of money in your own words. What criteria do accountants use to decide whether to use present or future values in accounting statements?Suppose you work in the loan department of Third National Bank.Byron Blakely, the owner of Byron’s Beauty Solutions, has come to you seeking a loan for$500,000 to expand operations. He proposes to use accounts receivable as collateral for the loanand has provided you with the following information from the company’s most recent financialstatements: Requirement1. Analyze the trends of sales, days’ sales outstanding, and cash collections from customersfor 2019 and 2018. Would you make the loan to Blakely? Support your decision with factsand figures. Assume there are no write-offs in 2018 and 2019.Please answer both parts, a. The qualities you look for in a friend are the same qualities a lending institution hopes to find in you. Do you agree or disagree with this statement? Explain. b. Suppose you are a loans officer in a bank. List three questions you would want to ask a customer who has come in to borrow $15 000 to buy a new boat?
- fter researching the different forms of business organization. Lily Koebel decides to operate "Cookie Creations" as a proprietorship. he then starts the process of getting the business running. In November 2021, the following activities take place. Nov. 8 8 11 13 14 (a) 16 17 20 25 30 Lily cashes her U.S. Savings Bonds and receives $540, which she deposits in her personal bank account. She opens a bank account under the name "Cookie Creations" and transfers $520 from her personal account to the new account. Lily pays $70 for advertising. She buys baking supplies, such as flour, sugar, butter, and chocolate chips, for $130 cash. (Hint: Use Supplies account.) Lily starts to gather some baking equipment to take with her when teaching the cookie classes. She has an excellent top- of-the-line food processor and mixer that originally cost her $780. Lily decides to start using it only in her new business. She estimates that the equipment is currently worth $310. She invests the equipment in…Colleen Fernandez, president of Rhino Enterprises, applied for a $175,000 loan from First Federal Bank. The bank requested financial statements from Rhino Enterprises as a basis for granting the loan. Colleen has decided to omit the other financial statements because there was a net loss during the past year. Is Colleen behaving in a professional manner by omitting some of the financial statements? Justify your answer. What types of information about their businesses would owners be willing to provide bankers? What types of information would owners not willing to provide? What types of information about a business would bankers want before extending the loan? What common interests are shared by bankers and business owners?Many of us apply the time value of money in our personal lives – for example when we invest dollars in a young child’s bank account earmarked for his or her eventual college education. Share an explanation of the time value of money in your own words. What criteria do accountants use to decide whether to use present or future values in accounting statements?
- You are the Senior Credit Officer at your bank. Miss James, your Junior Credit Officer, has presented the following projected data for 2019 supplied by The Mosely Corporation. She has asked for assistance in completing the statement of financial position. The Mosely Corporation has applied for a loan to start a project that you will eventually make the credit decision on. Mosely's actual sales for 2018 were $2,400,000. your The bank's lending policy requires that a borrower's financial position must show equity of at least 20% in order to attract the bank's funding. (a) Use the data to complete the statement of financial position for 2019As Loren is preparing the end of year financial statements, she realizes that the earnings are not quite high enough to justify the large loan application that is being currently processed. She decides to stretch the assumptions just enough to be able to meet the requirements for the loan application. This is an example of:Alyssa who is currently operating a machine shop is considering Dindin, an excellent employee, to be her partner. Unfortunately, Dindin could not afford to invest cash of P 500,000 which Alyssa needs to expand her business. As consultant, you asked Alyssa to answer some questions before giving an advice on whether Dindin should be taken in as partner. What is your present annual net income? P 450,000 Can you avail of a loan of P 500,000? Yes What bank and what is the interest rate? Land Bank @ 17% With the new equipment, how much additional income will it generate? P 450,000 In how many year are you going to pay the loan? 5 years How much are you willing to pay Dindin as salary or profit? P 160,000 You drafted the following information and filed it up: Net income…