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artcher [175]
3 years ago
10

Park & Company was recently formed with a $6,200 investment in the company by stockholders in exchange for common stock. The

company then borrowed $3,200 from a local bank, purchased $1,120 of supplies on account, and also purchased $6,200 of equipment by paying $2,120 in cash and signing a promissory note for the balance. Based on these transactions, the company's total assets are:
a) $14,600.

b) $12,400.

c) $11,520.

d) $9,400.
Business
1 answer:
KengaRu [80]3 years ago
4 0

Answer:

a) $14,600.

Explanation:

The computation of the company total assets are shown below:

= Cash balance + supplies balance + equipment balance

where,

Cash balance =  investment amount + borrowed amount - paid amount for equipment

= $6,200 + $3,200 - $2,120

= $7,280

And, the other item values would remain the same

Now put these values to the above formula  

So, the value would equal to

= $7,280 + $1,120 + $6,200

= $14,600

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A company investing borrowed funds expects to earn a return greater than the interest it will pay for the use of funds is using
Naddika [18.5K]

Answer:

Financial leverage

Explanation:

Financial leverage is defined as the use of borrowed funds to perform a business activity or investment that is expected to have higher returns than the cost of borrowing the money (interest).

When a company is looking for funds for its activities there are 3 options they can use: equity, debt, or lease.

Use of equity is the only option where no extra cost is incurred for use of funds.

When using debt or lease cost of use is incurred. The business will need to engage in an activity that will give it revenue above cost of debt.

This practice is called use of financial leverage.

3 0
3 years ago
A store that offers a wide variety of shoes for men, women, and children would most likely be considered a(n):
Kisachek [45]

Answer:

The correct answer is: Speciality retailer.

Explanation:

Speciality retailers are stores that operate similarly to regular retailers offering products manufactured by different companies but the focus their attention on a specific niche in the market. <em>Clothing, shoes, books, school supplies, </em>and <em>technology retailers</em> are examples of these types of stores.

4 0
3 years ago
Read 2 more answers
The five generic types of competitive strategies include
zepelin [54]

Answer:

The correct answer is B) low-cost provider strategies, broad differentiation strategies, best-cost provider strategies.

Explanation:

A competitive advantage allows one company to produce or sell goods more effectively than another company. For that reason, entrepreneurs always try to develop competitive strategies that help them maintain that advantage.

According to researcher researcher Michael E. Porter, there are at least four types of competitive strategies: differentiation, cost leader, low cost approach, and low cost differentiation. Each entrepreneur can use one of these standard strategies or develop his own strategy since flexibility is an important characteristic of competitive strategies, although the reality is that most companies use one of these four generic strategies.

5 0
3 years ago
Refer to the following table to answer the following questions:
sineoko [7]

Answer:

Following are the answer to this question:

In question first, the answer is "Option d".

In question second, the answer is "Option e".

In question third, the answer is "Option e".

In question fourth, the answer is "Option e ".

In question fifth, the answer is "Option b".

Explanation:

Given values:

Checkable \ deposits =  \$ 400,000,000\\Currency = \$ 340,000,000\\Traveler's \ checks = \$ 4,000,000\\Money \ market \ mutual \ funds = \$ 50,000,000\\Small \ time \ deposits = \$ 6,000,000\\Savings \ deposits = \$ 850,000,000\\

Solution:

  • \text{M1= currency +checkable deposits + travellers check}

    = $400000000+$340000000+$4000000

    = $744000000

\bold{\text{M2 = M1 +money market mutual funds + small time deposit+ saving deposit}}

      =  $744000000 + $50000000+$6000000+$850000000

       = $1,650,000,000

  • Saving account deposits, which means its amount of money increased throughout the M2 portion regular savings account. So M2 will grow  
  • Its increase in the number of employees may not impact the balance sheet with banks, because each bank maintains its entire cash flow
  • For banks, loans are investments if they're lending money as a bank to people. So, it's on income statement asset side
3 0
3 years ago
The most complex level of culture is the culture trait.
xeze [42]

Answer:

False.

Explanation:

Culture trait is the simplest level of culture. It is an individual tool, act, or belief that is related to a particular situation or need. Using spoons and forks when eating is a culture trait. Another trait is the specific greeting used when meeting people. If you meet a pal, you probably say, “Hello”. On the other hand, when greeting the company's manager you would probably be quite formal. The greeting you use is related to the particular situation or need.

So, Individual culture traits combine to form the next level – culture complexes.

And culture complexes combine to form larger levels called culture patterns. These patterns form important components of a society’s culture.

5 0
3 years ago
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