Answer:
Increase in value of firm due to debt = $350,000
Explanation:
given data
Value of debt = $1,000,000
interest rate = 7%
tax rate = 35%
solution
we get here Increase in value of firm due to debt that is express as
Increase in value of firm due to debt = Value of debt × tax rate ......................1
put here value and we get
Increase in value of firm due to debt = $1,000,000 × 35%
Increase in value of firm due to debt = $1,000,000 × 0.35
Increase in value of firm due to debt = $350,000
Answer:
C. Command Economy
Explanation:
a command economy is a system where the government rather than the free market determines what goods should be produced how much should be produced and the price at which goods are offered
Answer:
a) $1080
b)$19080
c) Loan given | -$18000
d)$540
e)$19620
f)loan | 18000
Interest received | $1620
g) $1620
Explanation:
a) Year 1 : a) Interest income = $18000*9%*8/12 = $1080
b) The total receivable at december 31,Year = 18000+1080 = $19080
c) Year 1 :Statement of cash flow
Loan given | -$18000
d) Interest income Year 2 = $18000*9%*4/12 = $540
e) Total cash collect in 2017 = $18000+$1080 + $540 = $19620
f) Cash flow from investing activities :
loan | 18000
Interest received | $1620
g)Total interest earned = 18000*9% = $1620
Answer: A. Cash flow from investing activities
Explanation:
When we prepare a cash flow statements the sum of following heads are ascertained:
- Cash flow from operating activities
- Cash flow from investing activities
- Cash flow from financing activities
The total sum of these three heads provide the net increase or decrease in cash.
Now we add the openening balance of cash to ascertain the closing cash balance which is reported to the final balance sheet of the company under the head Current Assets.
cash flow from investing activities indicates the inflow and outflow of cash of the business in sale and purchase of investments and assets.
A sole proprietor is personally liable for the liabilities which remain unpaid after the utilization of assets. In the given case the sole proprietorship has total assets of $34,583 and liabilities of $55,867. It means total assets can be used to pay off $34,583 out of total liabilities of $55,867 and the proprietor shall be personally liable for the balance liabilities= 55867-34583 = $21,284
Hence, you are personally liable for <u>$21,284</u>