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lyudmila [28]
3 years ago
13

Sam invests $5,000 of his own money in his new auto detailing business. He then obtains a loan and builds a small workshop in hi

s backyard for $10,000. At this point assets are ____, liabilities are ____, and owners' equity is ____.
Business
1 answer:
ki77a [65]3 years ago
7 0

Answer:

Assets= 15,000

Liabilities= 10,000

Owner's equity= 5,000

Explanation:

When he invests 5,000 of his own money that 5,000 is an asset as it is cash and the 10,000 he borrows is also an asset as it is cash. The liabilities are 10,000 as he has to pay 10,000 back and it is a loan so it is a liability also.

The owners equity is 5,000 as he invested 5,000 of his own money in the business and that is owners equity.

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yulyashka [42]
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6 0
3 years ago
Sally has invested $10,000 now and wants to earn a real interest rate of 10% per year. Assume that the inflation rate is 7% per
hodyreva [135]

Answer:

Results are below.

Explanation:

Giving the following information:

Inflation rate= 7%

Real rate of return= 10%

Present value (PV)= $10,000

Number of periods (n)= 10 years

<u>The real rate of return incorporates the effect of the inflation rate. Therefore, the nominal rate of return:</u>

Nominal rate of return= 0.1 + 0.07= 17%

<u>To calculate the Future Value, we need to use the following formula:</u>

FV= PV*(1 + i)^n

FV= 10,000*(1.17^10)

FV= $48,068.28

This is the n<u>ominal valu</u>e received after ten years.

<u>If Sally wants to determine the real value of the investment after 10 years, we must use the real rate of return:</u>

<u></u>

FV= 10,000*(1.1^10)

FV=$25,937.42

4 0
2 years ago
When the money market is drawn with the value of money on the vertical axis, the price level increases if Group of answer choice
oee [108]

Answer:

When the money market is drawn with the value of money on the vertical axis, the price level increases, money demand shifts right or money supply shifts left.

Explanation:

if the money market is drawn with the value of money on the vertical axis, while the price level increases there will be a decrement in the  value of money, and an increment in the quantity of money demanded.

An increment in the price level causes the money demand curve to shift to the right , while a decrement in the price level causes the money demand curve to shift to the left.

As the price level decreases, the value of money increases, so people want to hold less of it.

Therefore, when the money market is drawn with the value of money on the vertical axis, the price level increases, money demand shifts right or money supply shifts left.

7 0
2 years ago
Tickets to a concert are $35 each. In addition to the cost for the tickets ordered, there is a $15 processing charge per order.
Vesnalui [34]

Answer:

Explanation:

Let the cost of an order = C

Let the number of tickets inside that order = n

Let there be a 15 dollar service charge per order.

================

C = 35*n + 15

5 0
3 years ago
Marion Industries has an average accounts receivable turnover ratio of 12 times per year whereas most of its competitors have a
deff fn [24]

Answer:

C. using more liberal credit terms to increase sales

Explanation:

According to the question  it is given that the ratio of account receivable turnover has measured that comes 12 times which means it took 30 days

= 365 ÷ 12

= 30.41

= 30 days

But according to the competition, the ratio of account receivable turnover is 8 times so the competitor took 45 days

Therefore the Management of marian would have more liberal credit terms that would increase the sales

5 0
2 years ago
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