Question

Margot starts a new business and contributes $20,000 in cash; she also borrows $25,000 from her local bank. She utilizes the cash to purchase supplies for $5,000 and a computer system for $10,000. After these transactions, the total claims to the company's total resources are:

Answer 1

Answer:

$45,000

Explanation:

Given the above information, total resources is computed as;

Total resources = Cash + Purchase supplies + Equipment computer system

But

Cash = $20,000 + $25,000 - $5,000 - $10,000 = $30,000

Total resources = $30,000 + $5,000 + $10,000 = $45,000