Chapter 1, Problem 1AP

QUESTION 2 Your aunt Nokhona completed her dentistry studies at Sefako Makgatho Health Sciences University not long ago. She has been operating her dental practice for six months now. She knows you are studying financial management and she asks you to help her identify possible items of monetary and nonmonetary information she should include in her monthly report. In assisting her, she needs to know items to include and examples so that she gets a better understanding.

Preparing personal balance sheet. Use Worksheet 2.1. Katie Wrights banker has asked her to submit a personal balance sheet as of June 30, 2020, in support of an application for a 6,000 home Improvement loan. She comes to you for help in preparing it So far, she has made the following list of her assets and liabilities as of June 30, 2020: From the data given, prepare Katie Wrights balance sheet, dated June 30, 2020 (follow the balance sheet form shown in Worksheet 2.1). Then evaluate her balance sheet relative to the following factors: (a) solvency, (b) liquidity, and (c) equity in her dominant asset.

Preparing income and expense statement Use Worksheet 2.2 Ariana and Nicholas Peterson are about to construct their income and expense statement for the year ending December 31, 2020. Nicholas is finishing up college and currently has no income. They have put together the following income and expense information for 2020:   Ariana's salary $43,000 Reimbursement for travel expenses 1,700 Interest on:     Savings account 110   Bonds of Delta Corporation 70 Groceries 4,150 Rent 9,300 Utilities 960 Gas and auto expenses 650 Nicholas' tuition, books, and supplies 3,300 Books, magazines, and periodicals 280 Clothing and other miscellaneous expenses 2,900 Cost of photographic equipment purchased with charge card 2,200 Amount paid to date on photographic equipment 1,600 Ariana's travel expenses 1,950 Purchase of a used car (cost) 9,750 Outstanding loan balance on car 7,300 Purchase of bonds in Delta Corporation 4,900   Using the information provided,…

Problem 5-60 Future Value and Multiple Cash Flows [LO 1] An insurance company is offering a new policy to its customers. Typically, the policy is bought by a parent or grandparent for a child at the child’s birth. The details of the policy are as follows: The purchaser (say, the parent) makes the following six payments to the insurance company: First birthday: $ 900 Second birthday: $ 900 Third birthday: $ 1,000 Fourth birthday: $ 1,000 Fifth birthday: $ 1,100 Sixth birthday: $ 1,100 After the child’s sixth birthday, no more payments are made. When the child reaches age 65, he or she receives $231,000. If the relevant interest rate is 9 percent for the first six years and 6 percent for all subsequent years, what is the value of the policy at the child's 65th birthday? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.

PROMPT: Restful Sleep Mattress company is planning to expand into selling bedroom furniture. This expansion will require a loan from the bank. The bank has requested financial information. REQUIREMENTS: Discuss the information the bank would require. What information, if any, would you provide to the bank?

Case Study #2: Chapter 5 Business Analysis - Harry, a friend of yours, is taking a course in economics and has become confused by some of the terminologies because of the way people commonly use the same words.  The economics professor says investment occurs when companies buy equipment and build factories.  Yet Harry has always heard people talk about investing as a method of saving when they put money in the bank or purchase securities.  He's confused by these dissimilar uses of the word and has asked you to explain.  After asking for your help, Harry happily states that there's one thing he does understand perfectly about what the econ prof says, and that is "savings equals investment."  Since investing in stocks and bonds is also saving money, it's obvious that savings equal investment!  Write a brief explanation to help Harry out.

Direction: Encircle the letter of the best answer. 1.) jade invested P200,000 in a repair business. A. Debit land, credit cash B. Debit cash, credit Juan Dela Cruz, capital C. Debit land, credit account payable   2.) She paid the monthly rent of the office, P10,000. A. Debit cash, credit Juan Dela Cruz, capital B. Debit rent expense, credit cash C. Debit Juan Dela Cruz, personal, credit cash   3.) Sold a house and collected P15,000 commission. A. Debit cash, credit commission income B. Debit cash, credit Juan Dela Cruz, capital C. Debit commission expense, credit cash   4.) Received P20,000 as payment for services rendered to samantha A. Debit cash, credit service income B. Debit accounts receivable, credit service income C. Debit  cash, credit accounts receivable   5.) Paid P10,000 salary of the mechanic for the first half of the month. A. Debit cash, credit Juan Dela Cruz, capital B. Debit salary expense, credit cash C. Debit salary expense, credit accounts payable

Anthony Clement is applying for a car loan. The lending institution requires a personal net worth statement. Anthony currently has $1,085.00 in cash, and his camera is worth $635.00. He also owes Vista Travel $305.00 and Kelley Electronics $83.00. Complete a net worth statement for Anthony Clement. Select Current Date in the appropriate field. Assets should be listed in order of liquidity, so Cash should be listed first. Liabilities should be reported in alphabetic order.

Integrative Problem Samantha Sampson retired a few years ago at the age of 55. Because she is bored with retirement and still relatively young, Samantha has considered starting a business of her own. However, she doesn’t know anything about business. As a result, Sam has hired the consulting firm for which you work to give her a brief tutorial on business and finance. To begin her lesson, Ms. Sampson has asked you to answer the following questions: What is finance, and why is it important to understand finance to run a successful business? What are the major areas of the finance discipline? How has finance changed since the beginning of the twentieth century? What are some of the financial trends that are currently of interest to businesses? What is value, and how is it determined? What does it mean to maximize value? What is sustainability, and how is this concept related to finance? What is lean manufacturing? How is the goal of value maximization related to lean manufacturing?