Response: $11,200
Justification:
Utilizing the accounting equation:
(Total Assets) = (Total Liabilities) + (Total Capital)
Thus,
(Total Liabilities) = (Total Assets) - (Total Capital) (1)
To determine total liabilities, we first need to ascertain total assets and total capital.
At the end of the first year, the assets of Shapiro's consulting services are as follows:
Cash: $16,000
Office Supplies: $3,200
Equipment: $24,000
Accounts Receivable: $8,000
TOTAL ASSETS $51,200
Note that total assets are calculated by summing the values of each asset above.
Net income represents an increase (or decrease if it's a loss) in capital, thus we classify it as part of capital. Specifically, net income at the end of the first year adds to the initial capital.
The owner's withdrawal also decreases the capital.
Consequently, total capital at the end of the first year is computed as:
Capital (beginning of the year): $15,000
Net Income (end of year): $27,000
Withdrawal Amount: ($2,000)
TOTAL CAPITAL: $40,000
Note: The notation ($2,000) indicates a deduction of $2,000 in accounting terms.
Using (1), total liabilities at the end of the first year can be calculated as
(Total Liabilities) = (Total Assets) - (Total Capital)
= $51,200 - $40,000
Total Liabilities = $11,200
Answer:
The likelihood that neither of the stocks will rise is 0.14.
Explanation:
According to the Complement Rule, the combined probabilities of an event and its complement total 1.
Given the probabilities of Stock A or B increasing, to find the likelihood that neither will happen, we need to consider their complements.
The complement for Stock A =1-0.54=0.46
The complement for Stock B =1-0.68=0.32
To calculate the probability of both events not occurring, we multiply these complements.
The probability that neither of these two events occurs is 0.46 x 0.32 = 0.1472
Answer:
0.45
Explanation:
Total asset turnover indicates the ratio of total assets to total revenue. It evaluates how effectively a company is employing its assets to generate sales.
The calculation is performed as follows: Net Sales / Average Total Assets.
Average total assets are determined by: (Asset at Start + Asset at End) / 2.
Using the given data:
Total revenue = $900,000 and total assets = $2,000,000.
$900,000/$2,000,000 = 0.45.
Note: Since the beginning and ending assets are not specified, we assume $2,000,000 represents the average assets.
