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3 years ago

This shop is a sole trader and needs to obtain finance in order for the business to continue trading. Explain

Business

1 answer:

nata0808 [166]3 years ago

7 0

Answer:

see below

Explanation:

1. Personal Savings

The sole trader can invest his savings into his business for expansion. A sole trader who is confident about his business's prospects will be prepared to invest additional savings into the business for growth. The use of savings relieves them from the strain of interest payments and enables them to retain full control over the business.

2. Sale of Assets

Should a sole trader require funds to expand their business, they opt to dispose of some of their assets. If the trader does not have savings or retained earnings and have a property registered in their name, they may decide to sell it to raise capital.

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Use the following data to answer QuestionAccounts payable $30,000Accounts receivable 65,000Accrued liabilities 7,000Cash 20,000I

ra1l [238]

Answer:

Current (quick) assets: $195,000

Working capital: $138,000

Explanation:

We can find the correct answer by laying out the information appropriately:

Current Assets:

Accounts Receivable: $65,000

Cash: $20,000

Inventory: $72,000

Marketable securities: $36,000

Prepaid expenses: $2,000

Total: $195,000

Current Liabilities:

Accounts payable: $30,000

Accrued liabilities: $7,000

Notes payable (short-term): $20,000

Total: $57,000

Working capital = current assets - current liabilities

Working capital = $195,000 - $57,000

= $138,000

The following accounts mentioned in the question are non-current assets: intangible assets, long-term investments, and property, plant and equipment.

And long-term liabilities, as the name implies, is classified as a non-current liability.

3 0

3 years ago

Ultimate Sportswear has $100,000 of 8 noncumulative, nonparticipating, preferred stock outstanding. Ultimate Sportswear also has

andrew-mc [135]

Answer:

Preferred dividend = $8,000

Common stock dividend = $22,000

Explanation:

The computation of dividend is shown below:-

Preferred dividend = Total shares × Total shares of Noncumulative, nonparticipating, preferred stock outstanding

= $100,000 × 0.08

= $8,000

Common stock dividend = Cash dividend - Preferred dividend

= $30,000 - 8,000

= $22,000

Therefore the Preferred dividend is $8,000 and Common stock dividend is $22,000

7 0

4 years ago

Ticker Services began operations in 2015 and maintains long-term investments in available-for-sale securities. The year-end cost

Inessa05 [86]

Answer:

Dec. 31, year 1

Dr Fair value adjustment – AFS (LT) 11,140

Cr Unrealized gain – Equity 11,140

Dec. 31, year 2

Dr Fair value adjustment – AFS (LT) 16,160

Cr Unrealized gain – Equity 16,160

Dec. 31, year 3

Dr Fair value adjustment – AFS (LT) 73,000

Cr Unrealized gain – Equity 73,000

Dec. 31, year 4

Dr Unrealized loss – Equity 3,600

Cr Fair value adjustment – AFS (LT) 3,600

Explanation:

General journal for Ticker Services

Dec. 31, year 1

Dr Fair value adjustment – AFS (LT) 11,140

Cr Unrealized gain – Equity 11,140

($372,000 $360,860)

Dec. 31, year 2

Dr Fair value adjustment – AFS (LT) 16,160

Cr Unrealized gain – Equity 16,160

(455,800-428,500) -11,140

Dec. 31, year 3

Dr Fair value adjustment – AFS (LT) 73,000

Cr Unrealized gain – Equity 73,000

(700,500-600,200)-(455,800-428,500)

100,300-27,300=73,000

Dec. 31, year 4

Dr Unrealized loss – Equity 3,600

Cr Fair value adjustment – AFS (LT) 3,600

(700,500-600,200) -(876,900 -780,200)

100,300-96,700

3,600

5 0

3 years ago

Suppose the market for corn is a purely competitive, constant-cost industry that is in long-run equilibrium. now assume that an

sergij07 [2.7K]

After all resulting adjustments have been completed, the new equilibrium price will less than the initial price and output. The same will happen to the industry output. In each situation in which <span>an increase in product demand occurs in a decreasing-cost industry the result is: </span>the new long-run equilibrium price is lower than the original long-run equilibrium price.

5 0

3 years ago

Is this story: sole proprietorship, partnership, OR corporation?

Mrrafil [7]

It's a <span>partnership. I have to write more words but that's what that arrangement is.</span>

3 0

3 years ago