Prepare the balance sheet after csu takes out the bank loan

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Investment Analysis

CSU-Products is a start-up computer software development firm. It currently owns computer equipment worth $40,000 and has cash on hand of $10,000 contributed by CSU's owners. For each of the following transactions, identify the real and/or financial assets that trade hands. Are any financial assets created or destroyed in the transaction?

1. CSU takes out a bank loan. It receives $10,000 in cash and signs a note promising to pay back the loan over 2 years.

2. CSU uses $20,000 of its own funds to finance the development of new financial planning software.

3. CSU sells the software product to Microsoft, which will market it to the public under the Microsoft name. CSU accepts payment in the form of 1,000 shares of Microsoft stock.

4. CSU sells the shares of stock for $60 per share and uses part of the proceeds to pay off the bank loan.

5. Prepare the balance sheet after CSU takes out the bank loan and spends the $20,000 to develop its software product. What is the ratio of real assets to total assets?

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A short assignment which defines the financial assets and real assets on the practical perspective and the solving is defined under the limelight of balance sheet perspective.

Reference no: EM132111539

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Reviews

inf2111539

11/12/2018 12:35:44 AM

This solution was properly updated, some of the numbers were changed but the "Ratio of real asset to total asset was also updated. I am very much pleased with the results of this assignment. Again, I am satisfied with what I have been provided. Thanks for your continued response. I turned the assignment in as it was presented by your team, and the result was outstanding. Your information states that papers are done plagiarism free and they are like that only. The bank loan is correct as it is a $10,000 loan and not 20,000... Thanks Experts Mind for providing me the solution and made it on time..

inf2111539

11/12/2018 12:25:04 AM

This solution was absolutely fine. The answers are correct. Please SEE THE UPDATED ATTACHMENT and do the same until what is highlighted? The yellow highlight is what I need solved. Thanks so much! 30144177_1Updated -Module 1 -Option .docx

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