BUSINESS HIGH SCHOOL

As of December 31, 2017, Armani Company’s financial records show the following items and amounts. Cash $ 10,000 Accounts receivable 9,000 Supplies 6,000 Equipment 5,000 Accounts payable 23,000 A. Armani, Capital, Dec. 31, 2016 4,000 A. Armani, Capital, Dec. 31, 2017 7,000 A. Armani, Withdrawals 13,000 Consulting revenue 33,000 Rental revenue 22,000 Salaries expense 20,000 Rent expense 12,000 Selling and administrative expenses 8,000 Note: Early in 2017, the owner invested $1,000 cash in the business. Required: Prepare a year-end statement of owner’s equity for Armani Company. Hint: Notice the owner invested $1,000 cash during the year.1. Prepare the 2017 year-end income statement for Armani Company. 2. Use the information in Problem 1-3A to prepare a year-end statement of retained earnings for Armani Company Problem 1-4A Preparing a statement of retained earnings P2 Problem 1-5A Preparing a balance sheet P2 3. Use the information in Problem 1-3A to prepare a year-end balance sheet for Armani Company.

Answers

Answer 1
Answer:

Answer:

Net Income for the year ended December 31, 2017

Consulting revenue 33,000

Rental revenue        22,000

Total Revenues        55,0000

Salaries expense (20,000)

Rent expense       (12,000)

S&A expenses       (8,000)

Net Income                  15,000

Statement of RE

net income   15,000

withdrawals (13,000)

ending retained earnings 2,000

Balance Sheet

Cash          10,000            Accounts payable 23,000

A/R              9,000           A. Armani, Capital, Dec. 31, 2016 7,000

Supplies     6,000            

Equipment 5,000

Total Assets:  30,0000  Total liab + Equity 30,000

owner's equity:

                Armani Capital Retained Earings Total

Balance Jan 1            4,000          0                4,000

Net Earnings                          15,000     15,000

Withdrawals                         -13,000    -13,000

Contribution           1,000                        1,000

Balance, Dec 31  5,000         2,000       7,000

Explanation:

First we do the net income which is revenues less expenses.

Then we proceed with the retained earnings, which si income less withdrawals

Finally the balance sheet we order the assets accoutn in the left and liabiltiies and equity on the right. They should always match as the balance sheet represent the accounting equation: A = L + E

For the owner's equity statement we most disclosure all changes in equity during the year.
Answer 2
Answer:

Final answer:

To prepare a year-end statement of owner’s equity, calculate the beginning capital balance, add investments or withdrawals, and adjust for net income or loss.

Explanation:

To prepare a year-end statement of owner’s equity for Armani Company, we need to calculate the beginning capital balance, add additional investments or withdrawals made by the owner during the year, and adjust for net income or net loss. Here are the steps:

  1. Calculate the beginning capital balance by subtracting the owner's capital as of Dec. 31, 2016 ($4,000) from the owner's capital as of Dec. 31, 2017 ($7,000). The beginning capital balance is $3,000.
  2. Add any additional capital investments made by the owner during the year. In this case, the owner invested $1,000 cash in the business, so we add $1,000 to the beginning capital balance.
  3. Subtract any withdrawals made by the owner during the year. In this case, the owner made withdrawals of $13,000, so we subtract $13,000 from the previous balance.
  4. Add or subtract net income or net loss for the year. Since we don't have that information, we'll assume there is no net income or loss.
  5. The final balance is the owner's equity as of Dec. 31, 2017.

Using this information, the year-end statement of owner’s equity for Armani Company would show a final balance of $3,000 + $1,000 - $13,000 = -$9,000.

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Answers

The company's managers should not accept this project. The first project exhibits decreasing cash flows, and the project's Modified Internal Rate of Return (MIRR) would be 8.37%, assuming Jamison's desired rate of return is 7.00%.

As this MIRR is greater than Jamison's desired rate of return, the company's managers should accept this project.

For the second project, the MIRR is 6.70%, assuming Jamison's desired rate of return is 7.00%.

As this MIRR is less than Jamison's desired rate of return, the company's managers should not accept this project.

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A firm seeking a growth strategy designed to increase sales of existing products to current​ customers, nonusers, and users of competitive brands in served markets would utilize which of the following marketing​ strategies? A. Market development B. Market penetration C. Control D. Diversification E. Product development

Answers

Answer:

The correct answer is B Market penetration

Explanation:

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Answers

Answer:

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Explanation:

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Answers

Answer:

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Explanation:

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Answer:

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Explanation:

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