The answer is C lowering taxes while easing spending
Answer
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Explanation
Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in 2 sheets with the formulas indications.
The owner's equity division should contain a) 31 P. Woodsley Capital.
The statement of owner's equity includes the capital and the changes that affects the capital like additional contribution, net income, withdrawals, and expenses.
Additional contribution and net income increases the value of the owner's equity.
Withdrawal and expenses decreases the value of the owner's equity.
Answer:
$1,000,000
Explanation:
The fund raised by the company through venture capital is $400,000 in return for 40% holding in the company.
Venture capitalist holds 10,000 shares and it represents 40% of total holdings.
Assume that the total value of firm is x. The venture capitalist will hold 40% of total capital which equals to $400,000. The total value of firm will be
40% * x = 400,000
x = 400,000/40%
x = 400,000/0.4
x = 1,000,000
Hence, the after value of firm will be $1,000,000
It B, understand the strategies of your competitors so you can come up with an even better one.
