Answer:
The answer is B. After the income statement and before the statement of owner's equity.
Explanation:
Income Statement shows the profitability of a business over a period of time.
Balance sheet shows the financial position of a business at the end of the period.
Statement of owner's equity shows the changes in owner's equity over a period of time.
Balance sheet is prepared after the income statement because profit for the year(net profit) in income statement is a line item under owner's equity in balance sheet. It must be known and the figure(net income) must be transferred to balance sheet (equity).
It is prepared before the statement of owner's equity because changes in equity (difference between opening and closing balance under equity in balance sheet) is a line item under changes in owner's equity. Also, issues of shares(in balance sheet) is a line item under statement of changes in owner's equity.
Answer:
The correct answer is letter "E": To a large extent, the decision to dissolve a firm through liquidation versus keeping it alive through reorganization depends on a determination of the value of the firm if it is rehabilitated versus the value of its assets if they are sold off individually.
Explanation:
Liquidation refers to the termination of an enterprise and the transfer of its properties to the creditor or business owners. The liquidation most frequently happens in the context of a bankruptcy. A bankruptcy trustee must sell the company properties to the creditors and split the proceeds.
<em>The decision of keeping a business against liquidating it will depend on the comparison between the value of continuing operating which relies on the current value the firm has in the market against the value of the individual assets the firm has. Whichever greater will determine if the business will remain open or if it will be closed.</em>
Answer:
It's represented by a movement along the demand curve
Answer:
$17,167
Explanation:
<em>The first step is to calculate amount of cash that would be charged</em>
<em>For 30 months, pay $520 per month for 30 months and an additional $10,000 at the end of 30 months.</em>
Present value is = 2,221
<em>Then</em>
<em>The present value of the payment options is =</em>
<em>($520 * PVA (24% 12,30) + $10,000 PV ( 24% 12,30))</em>
<em>$520 * 22.396 + $10,000 * 0.5521</em>
<em>$11646 + $ 5521</em>
<em>$17,167</em>
<em>Therefore the amount of cash the car dealer would charge is $17,167</em>
