Response:
Balance Sheet for Charlie’s Crispy Chicken (CCC) as of September 30
Assets
Non-Current Assets
Equipment $49,000
Land $23,400
Total Non-Current Assets $72,400
Current Assets
Supplies $2,300
Cash $2,300
Total Current Assets $4,600
Total Assets $77,000
Equity and Liabilities
Equity
Common Stock $36,000
Retained Earnings $3,900
Total Equity $39,900
Liabilities
Non-current Liabilities
Note Payable (long-term) $34,000
Total Non-current Liabilities $34,000
Current Liabilities
Accounts Payable $2,900
Salaries and Wages Payable $200
Total Current Liabilities $3,100
Total Equity and Liabilities $77,000
Clarification:
It's essential to adhere to the accounting equation when preparing a balance sheet, which states: Assets = Equity + Liabilities
Older individuals benefit in wealth accumulation.
Explanation:
Generally, older adults possess more financial resources because:
1. They typically have longer career spans, which leads to better salary opportunities and job positions.
2. They have had an extended timeframe to save and invest their resources.
Individuals in older age categories typically find it easier to amass wealth during their working years. Conversely, young professionals starting their careers often struggle to gather significant wealth.
Cash flow from operating activities amounts to 3,800,000.
Explanation: Cash generated from sales is (A) 21,000,000. Cash expenses to suppliers (B) total (15,200,000). Interest paid is (1,000,000), and income taxes paid also amount to (1,000,000). Thus, cash flow from operational activities equals 3,800,000. (A) reflects sales and accounts receivable totaling 3,000,000 + 21,000,000 - 2,500,000, resulting in 21,500,000. (B) involves computations for purchases based on COGS and inventory assessments: purchases arrive at 15,000,000 + 3,000,000 - 2,400,000 equating to 15,600,000. Therefore, we solve for suppliers' payments, yielding 1,000,000 + 15,600,000 - 1,400,000 = 15,200,000.
