Answer:
The net worth (owners' equity) for this business is $2.2 million
Explanation:
Net worth: It is also known as owner's equity which is a difference between total assets and total assets.
In this question, we use the accounting equation which is used to balance the debit and credit side of the balance sheet items.
So, the accounting equation is
Total Assets = Total Liabilities + Owner's Equity
where,
Company assets are $3.5 million
And, liabilities is $1.3 million
Now, apply the above equation to find out the value of the owner's equity
So, owner equity would be equals to
= $3.5 million - $1.3 million
= $2.2 million
Hence, the net worth (owners' equity) for this business is $2.2 million
Answer:
$434
Explanation:
Net sales = $2,910
-Cost of goods sold = $1,560 (Working)
=Gross profit = $1350
-Operating expenses = $730
=Profit before Tax = $620
-Tax 30% = $186
=Net Profit/Net Income= $434
<u>Working</u>
Cost of goods sold = Cost of goods available for sale - Closing Inventory if LIFO is elected
Cost of goods sold = 2,430 - 870 = 1560
Answer:
$828.36
Explanation:
As for the information provided,
The value = $1,000
Life = 20 years, since interest is semi annual, effective period = 20 
= 40 periods.
Semi annual interest = $40
Annual interest = 10%, effective interest rate = 5%
Future Value Interest rate = $40 
= $40 17.159 = $686.36
Future Value of Principal = $1,000 
= $1,000 0.142 = $142
Thus, current price of bond = $686.36 + $142 = $828.36
Answer:
The amount received in cash is $686
Explanation:
The amount which is received in cash is computed as:
On June 20, the amount of $300 goods returns from customer, so the remaining balance is
= $1,000 - $300
= $700
On the remaining balance, the discount which is evaluated as the payment is received within the discount period which is June 24. So,
= $700 x (100% - 2%)
= $ 700 x 98%
= $ 686
