The real/financial assets in the situation where Lanni Products is approved with a bank loan of $50,000 in the form of cash on the agreement of repaying it over 3 years. Introduction: Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

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Answer 1

Question

Chapter 1, Problem 7PS

a.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products is approved with a bank loan of $50,000 in the form of cash on the agreement of repaying it over 3 years.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

b.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products utilizes the cash given by the bank along with its fund of $20,000 to finance the development of new financial software.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

c.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products sells its software to Microsoft and accepts payment in the form of 2500 shares of Microsoft stock.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

d.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products sell the shares of stock at $50 per share and the returns earned is utilized for repayment of bank loan.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

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Lanni Products is a start-up computer software development firm. It currently owns computer equipment worth $30,000 and has cash on hand of $20,000 contributed by Lanni's owners. Lanni takes out a bank loan. It receives $50,000 in cash and signs a note promising to pay back the loan over three years. Lanni uses the cash from the bank plus $20,000 of its own funds to finance the development of new financial planning software. Lanni sells the software product to Microsoft, which will market it to the public under the Microsoft name. Lanni accepts payment in the form of 1,000 shares of Microsoft stock. Lanni sells the shares of stock for $140 per share and uses part of the proceeds to pay off the bank loan. Required: a-1. Prepare its balance sheet just after it gets the bank loan. a-2. What is the ratio of real assets to total assets? (Round your answer to 1 decimal place.) b-1. Prepare the balance sheet after Lanni spends the $70,000 to develop its software product, with the…

Lanni Products is a start-up computer software development firm. It currently owns computer equipment worth $30,000 and has cash on hand of $20,000 contributed by Lanni's owners. Lanni takes out a bank loan. It receives $50,000 in cash and signs a note promising to pay back the loan over three years. Lanni uses the cash from the bank plus $20,000 of its own funds to finance the development of new financial planning software. Lanni sells the software product to Microsoft, which will market it to the public under the Microsoft name. Lanni accepts payment in the form of 2,000 shares of Microsoft stock. Lanni sells the shares of stock for $70 per share and uses part of the proceeds to pay off the bank loan. a-1. Prepare its balance sheet just after it gets the bank loan. a-2. What is the ratio of real assets to total assets? (Round your answer to 1 decimal place.) b-1. Prepare the balance sheet after Lanni spends the $70,000 to develop its software product, with the software…

Answer 2

Question

Chapter 1, Problem 7PS

a.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products is approved with a bank loan of $50,000 in the form of cash on the agreement of repaying it over 3 years.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

b.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products utilizes the cash given by the bank along with its fund of $20,000 to finance the development of new financial software.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

c.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products sells its software to Microsoft and accepts payment in the form of 2500 shares of Microsoft stock.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

d.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products sell the shares of stock at $50 per share and the returns earned is utilized for repayment of bank loan.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

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Answer 3

Question

Chapter 1, Problem 7PS

a.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products is approved with a bank loan of $50,000 in the form of cash on the agreement of repaying it over 3 years.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

b.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products utilizes the cash given by the bank along with its fund of $20,000 to finance the development of new financial software.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

c.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products sells its software to Microsoft and accepts payment in the form of 2500 shares of Microsoft stock.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

d.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products sell the shares of stock at $50 per share and the returns earned is utilized for repayment of bank loan.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

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Answer 4

Question

Chapter 1, Problem 7PS

a.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products is approved with a bank loan of $50,000 in the form of cash on the agreement of repaying it over 3 years.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

b.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products utilizes the cash given by the bank along with its fund of $20,000 to finance the development of new financial software.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

c.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products sells its software to Microsoft and accepts payment in the form of 2500 shares of Microsoft stock.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

d.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products sell the shares of stock at $50 per share and the returns earned is utilized for repayment of bank loan.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

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Answer 5

Chapter 1, Problem 7PS

a.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products is approved with a bank loan of $50,000 in the form of cash on the agreement of repaying it over 3 years.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

b.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products utilizes the cash given by the bank along with its fund of $20,000 to finance the development of new financial software.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

c.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products sells its software to Microsoft and accepts payment in the form of 2500 shares of Microsoft stock.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

d.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products sell the shares of stock at $50 per share and the returns earned is utilized for repayment of bank loan.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

Answer 6

Chapter 1, Problem 7PS

a.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products is approved with a bank loan of $50,000 in the form of cash on the agreement of repaying it over 3 years.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

Answer 7

Chapter 1, Problem 7PS

a.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products is approved with a bank loan of $50,000 in the form of cash on the agreement of repaying it over 3 years.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

Answer 8

b.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products utilizes the cash given by the bank along with its fund of $20,000 to finance the development of new financial software.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

Answer 9

b.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products utilizes the cash given by the bank along with its fund of $20,000 to finance the development of new financial software.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

Answer 10

c.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products sells its software to Microsoft and accepts payment in the form of 2500 shares of Microsoft stock.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

Answer 11

c.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products sells its software to Microsoft and accepts payment in the form of 2500 shares of Microsoft stock.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

Answer 12

d.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products sell the shares of stock at $50 per share and the returns earned is utilized for repayment of bank loan.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

Answer 13

d.

Summary Introduction

To identify: The real/financial assets in the situation where Lanni Products sell the shares of stock at $50 per share and the returns earned is utilized for repayment of bank loan.

Introduction:

Financial asset: It is a non-physical asset consisting of a worth or value that is derived from a contractual claim like bank deposits, stocks or bonds. It is more liquid than real assets.

Answer 14

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Answer 17

Ch. 1 - Prob. 1PS Ch. 1 - Prob. 2PS Ch. 1 - Prob. 3PS Ch. 1 - Prob. 4PS Ch. 1 - Prob. 5PS Ch. 1 - Prob. 6PS Ch. 1 - Prob. 7PS Ch. 1 - Prob. 8PS Ch. 1 - Prob. 9PS Ch. 1 - Prob. 10PS

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