What would you advise manele to do

Assignment Help Accounting Basics

Reference no: EM131910187

Problem

Manele, a financial consultant, has been self-employed for two years. His list of clients has grown and he is earning a reputation as a shrewd investor. Manele rents a small office, uses the pool secretarial services, and has purchased a vehicle that he is depreciating over three years.

The following income statements cover Charles's first two years of business:

Year 1 Year 2

Commission revenue 25000 65000

Rent 12000 12000

Secretarial services 3000 9000

Car expenses, gas, insurance 6000 6500

Depreciation 15000 15000

Net income 11000 22500

Manele believes that he should earn more than R11 500 for working very hard for two years. He is thinking about going to work for an investment company where he can earn R40 000 per year. What would you advise Manele to do?

Reference no: EM131910187

Questions Cloud

What is the probability that the put option will be exercise : You are the treasurer of Arizona Corporation and must decide how to hedge (if at all) future receivables of 350,000 Australian dollars (A$) 180 days from now.

Grand jury proceedings or for a criminal trial : You will also discuss jurors' qualifications as well as challenges for cause and preemptory challenges.

John lennon''s ideas in the song imagine : Post a thread in which you tell your thoughts regarding John Lennon's ideas in the song "imagine".

Explain your would you bu sell or hold the stock : The Kroger Company has an expected rate of return of 0.11 and a B of 1.5. The risk-free rate is 0.05 and the market expected rate of return is 0.09.

What would you advise manele to do : Manele, a financial consultant, has been self-employed for two years. His list of clients has grown and he is earning. What would you advise Manele to do?

What we talk about when we talk about love : What we talk about when we talk about love", The argument between the couples seems to be about the nature of love. Which character's ideas make the most sense

What theme about society : QUESTION: What theme about society, life, or the world is the author making?

How much needs to be invested in stock b for a portfolio : You have a $1000 portfolio that is invested in stocks A and B plus a risk-free asset. $175 is invested in stock A.

Compute income for each of three years using absorption cost : A manufacturer reports the information below for three recent years. Compute income for each of the three years using absorption costing.

User Account

All Pages