A.
Concept Introduction:
Accounting has formula that represents assets is equal to the liabilities plus owner’s equity. Each year owner’s equity is calculated by after reducing and adding the profit or loss of the year. Net Income or profit is calculated by reducing expenses from revenues.
To Calculate:
Prepare Balance sheet with equity balance.
B.
Concept Introduction:
Accounting has formula that represents assets is equal to the liabilities plus owner’s equity. Each year owner’s equity is calculated by after reducing and adding the profit or loss of the year. Net Income or profit is calculated by reducing expenses from revenues.
Debt ratio is calculated from debt dividing by the total assets.
Requirement-2:
To Calculate:
Debt ratio and return on assets ratio for the company.
3.
Concept Introduction:
Accounting has formula that represents assets is equal to the liabilities plus owner’s equity. Each year owner’s equity is calculated by after reducing and adding the profit or loss of the year. Net Income or profit is calculated by reducing expenses from revenues.
Debt ratio is calculated from debt dividing by the total assets.
To Suggest:
Taking loan of $ 30000 is good for business or not for business.
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Gen Combo Ll Financial Accounting: Information For Decisions; Connect Ac
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