How can a business earn large profits

Assignment Help Accounting Basics
Reference no: EM13220546

a. If you could pick a single source of cash for your business, what would it be? Why? 

b. How can a business earn large profits but have a small balance in Retained Earnings? 

c. How can a business lose money for many years and still have plenty cash? 

d. Give two reasons why a business can be profitable for many years and still have a cash shortage? 

e. Suppose your business has $80,000 worth of liabilities that must be paid within the next three months. Your liquid (can be turned into cash quickly) assets total only $60,000, your sales and collections from customers are slow. Identify two ways to finance the remaining $20,000 you will need, so you can pay all of the liabilities when they are due 

Reference no: EM13220546

Questions Cloud

Negative mentoring experiences reported by proteges : What are the categories that best describe the negative mentoring experiences reported by proteges?
Products and merely repeating lies fed : Is it conceivable that he was unaware of the problems of his company"s two major products and merely repeating lies fed to him by other executives of the company?
Draw the histogram-are there more people age : Draw the histogram. Use your Histogram to answer the following questions: A) Are there more children age 1, or elders age 71? B) Are there more 21yearolds, or 61yearolds? C) Are there more people age
The motor portions of the ans, sympathetic, parasympathetic : The motor portions of the ANS, sympathetic and parasympathetic, are characterized by a two-neuron chain. The pre-ganglionic nerve cell body is found in the _ _ _ _ _ _ _ and the postganglionic nerve cell body is found _ _ _ _ _ __.
How can a business earn large profits : If you could pick a single source of cash for your business, what would it be? Why?  How can a business earn large profits but have a small balance in Retained Earnings?
Calculate the number of workshops : Given the allocated costs at 10% of revenue, calculate the number of workshops that must be offered to break-even. Re-calculate #2 above, assuming Janice can re-negotiate the part-time trainers’ cost to $1000 per workshop.
Negative mentoring experiences : What are the categories that best describe the negative mentoring experiences reported by proteges?
Draw the histogram : Use your Histogram to answer the following questions: A) Are there more children age 1, or elders age 71? B) Are there more 21yearolds, or 61yearolds? C) Are there more people age 0
Physical components and logical components : Every computer consists of physical components and logical components. The logical components of a computer that understand how to work with the physical components are referred to as:

Reviews

Write a Review

 

Accounting Basics Questions & Answers

  Define the term earnings per share

Define the term "earnings per share" as it applies to a corporation with a capitalization structure composed of only one class of common stock and explain how earnings per share should be computed and how the information should be disclosed in the..

  Adjusted basis for partnership interest

The distribution consists of $75,000 cash and property with an adjusted basis to the partnership of $20,000 and a fair market value of $25,000. Immediately before the distribution, Wendy's adjusted basis for her partnership interest is $90,000. We..

  What is the amount of ending inventory

Chess Top uses the periodic inventory system. For the current month, the beginning inventory consisted of 200 units that cost $65 each. During the month, the company made two purchases: 300 units at $68 each and 150 units at $70 each. Chess Top al..

  Describing generally accepted auditing standards

Describe the elements of the Generally Accepted Auditing Standards (GAAS).

  Inventories having different financial base

Management has studied the problem and it appears that beginning inventories may be the cause of the unmatched information. The reason for this is that the inventories have a different financial base because of the severe inflation.

  Determine the current yield on your bond investment

Assume you purchased a corporate bond at its current market price of $850 on January 2, 2002. It pays 9 percent interest and it will mature on December 31, 2011, at which time the corporation will pay you the face value of $1,000. a. Determine the..

  Result of the partnership interest

The LAN partnership had $15,000 in outstanding liabilities on December 31, 2010. Assuing there were no distributions to the partners, what total amount of income will Jaay report for 2010 as a result of his partnership interest?

  Prepare the journal entry to record the interest

On January 1, 2010, Branson Designers issued $900 Million of its 8% bonds $836 million. The bonds were then prices to yield 10%. The interest will be payable on June 30 and December 31.

  Prepare the cash budget for the second quarter

Go Blue's excellent record in account receivable is expected to continue, with 60 percent of the billings collected in the month of the sales and the remaining 40 percent collected two months after the sales.

  Types and functions of financial intermediaries

Explain the role of the Financial System Why do we need financial markets? Why do we need financial intermediaries? What are types and functions of financial intermediaries?

  Example of the kinds of decisions

Explain what each of the different responsibility centers is and what each is accountable for and why each center has its own budget. Give an example of the kinds of decisions where incremental analysis would be used in each center.

  Investment in debt securities

Prepare the entry for May 1, 2007. The bonds are sold on August 1, 2008 for $425,000 plus accrued interest. Prepare all entries required to properly record the sale. (Show all calculations).

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd