Thank you 7. The businesses predicted to undergo the mostgrowth in the coming decade area. primarily service businessesb. primarily manufacturing businessesc. businesses that convert materials intoproductsd. businesses that sell retail products towholesalers8. A business owner with unlimited liabilitya. could have to sacriÿce personal money andpossessions to pay business debtb. is not personally responsible for the debtsof the businessc. is a shareholder of a corporationd. would not have to sacriyce personal moneyand possessions to pay business debt9. The purpose of a cooperative isa. to earn projts for managementb. to beneÿt its membersc. to provide unlimited liability to itsmembersd. to pay dividends to investors10. One advantage of a corporation as compared to asole proprietorship isa. a corporation is easier to set up andrequires less paperworkb. a corporation provides limited liability forits ownersc. a corporation has fewer shareholdersd. a corporation has a partnership agreement11. A nonproÿt corporationa. provides unlimited liability to its membersb. provides limited liability to its membersc. is set up to make proyts for its investorsd. is set up to pay dividends to itsshareholders12. The special permit that allows retailers to purchasegoods tax-free from wholesalers and collect salestax from ünal buyers is called a 12. The special permit that allows retailers to purchasegoods tax-free from wholesalers and collect salestax from ÿnal buyers is called aa. reseller's permitb. retailing permitc. tax permitd. wholesale permit

Question No 7 The business predicted to undergo the most growth in coming decades are (b) primarily…

c. businesses that convert materials into products d. businesses that sell retail products to wholesalers 8. A business owner with unlimited liability a. could have to sacriýce personal money and possessions to pay business debt b. is not personally responsible for the debts of the business c. is a shareholder of a corporation d. would not have to sacriyce personal money and possessions to pay business debt 9. The purpose of a cooperative is a. to earn proyts for management b. to beneÿt its members c. to provide unlimited liability to its members d. to pay dividends to investors 10. One advantage of a corporation as compared to a

c. businesses that convert materials into products d. businesses that sell retail products to wholesalers 8. A business owner with unlimited liability a. could have to sacriýce personal money and possessions to pay business debt b. is not personally responsible for the debts of the business c. is a shareholder of a corporation d. would not have to sacriyce personal money and possessions to pay business debt 9. The purpose of a cooperative is a. to earn proyts for management b. to beneÿt its members c. to provide unlimited liability to its members d. to pay dividends to investors 10. One advantage of a corporation as compared to a

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter13: Comparative Forms Of Doing Business

Section: Chapter Questions

Problem 33P

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You are considering two possible companies for investment purposes. The following data is available for each company. Additional Information: Company A: Bad debt estimation percentage using the income statement method is 6%, and the balance sheet method is 10%. The $230,000 in Other Expenses includes all company expenses except Bad Debt Expense. Company B: Bad debt estimation percentage using the income statement method is 6.5%, and the balance sheet method is 8%. The $140,000 in Other Expenses includes all company expenses except Bad Debt Expense. A. Compute the number of days sales in receivables ratio for each company for 2019 and interpret the results (round answers to nearest whole number). B. If Company A changed from the income statement method to the balance sheet method for recognizing bad debt estimation, how would that change net income in 2019? Explain (show calculations). C. If Company B changed from the balance sheet method to the income statement method for recognizing bad debt estimation, how would that change net income in 2019? Explain (show calculations). D. What benefits do each company gain by changing their method of bad debt estimation? E. Which company would you invest in and why? Provide supporting details.
Hey, I'm having problems trying to find the solution for e and f. can you guys help! Six Measures of Solvency or Profitability The following data were taken from the financial statements of Gates Inc. for the current fiscal year. Property, plant, and equipment (net) $3,200,000 Liabilities: Current liabilities $1,000,000 Mortgage note payable, 6%, issued 2005, due 2021 2,000,000 Total liabilities $3,000,000 Stockholders’ equity: Preferred $10 stock, $100 par (no change during year) $1,000,000 Common stock, $10 par (no change during year) 2,000,000 Retained earnings: Balance, beginning of year $1,570,000 Net income 930,000 $2,500,000 Preferred dividends $100,000 Common dividends 400,000 500,000 Balance, end of year 2,000,000 Total stockholders’ equity $5,000,000 Sales $18,900,000 Interest expense…
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