Answer:
Sole proprietor
Explanation:
Sole proprietorship is a form of business in which an individual or a single person owns, control and manages a business. Anybody who is into such kind of business is known as a sole proprietor.
One of the downsides of sole proprietorship is the fact that the owner takes all the risk of the business. In other words, if the business suffers or fails, it is the sole proprietor that would be affected because he/she is the only person in charge of the business.
Answer:the machine’s second-year depreciation and year end book value under the straight-line method is $3,990 and$40,420 respectively.
Explanation:
Straight line depreciation is calculated as
Depreciation= Initial value – salvage value / useful life
Depreciation=($48,400- $9,000)/10=$3,990
The depreciation expense each year would be $3990
Book value = Cost of asset- accumulated deprecation
Book value = Cost of asset - (2 years x depreciation)
= $48,400- (2 x $3,990)
= $40,420
Therefore, the machine’s second-year depreciation and year end book value under the straight-line method is $3,990 and$40,420 respectively.
Answer:
c. liquidity ratio
Explanation:
Liquidity means having cash or access to cash readily available to meet obligations to make payments.
For the purpose of ratio analysis, liquidity is measured on the assumption that the only sources of
cash available are:
Cash in hand or in the bank, plus
Current assets that will soon be converted into cash during the normal cycle of trade.
It is also assumed that the only immediate payment obligations faced by the entity are its current liabilities.
There are two ratios for measuring liquidity:
Current ratio
Quick ratio, also called the acid test ratio.
Based on the above discussion, the answer is c. liquidity ratio
Answer:
Cash Dividends - Year 2 = $84400
Explanation:
The net income of the business is usually appropriated or used for two purposes at the end of the year. It is either used to pay dividends or is retained in the business and is added to the retained earnings or both.
Thus, to calculate the dividends paid by the business in a particular year, we can calculate the change in retained earnings and deduct it from the net income.
Change in retained earnings = Ending balance of retained earnings - Beginning balance of retained earnings
Change in retained earnings = 694000 - 587400
Change in retained earnings = $106600
Thus, out of the net income of $191000, $106600 were transferred to retained earnings. So, the amount of dividends paid for the year is,
Cash Dividends - Year 2 = 191000 - 106600 = $84400
