Assignment 9: Business Finance Instructions

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Assignment 9 (16 points) Assignment 9: Business Finance Instructions Save this file in your course folder, and name it with Assignment, the section number, and your first initial and last name. For example, Jessie Robinson's assignment for Section 1 would be named Assignment1JRobinson. Type the answers to the assignment questions below. Use complete sentences unless the question says otherwise. You will have more than one day to complete an assignment. At the end of each day, be sure to save your progress. Review Lesson 4 of the Course Overview for instructions about turning in your assignments. Assignment Questions 1. Choose an example of a type of new company you could start, and then use this company idea to answer the…show more content…
It might impact the sales of products in my salon, but that would only be a small portion of the income in my business so it shouldn’t impact it too hard. f. If you had $5,000 to start this company, which department would get the most funding? Which department would get the least funding? Which phase of the business would be the most expensive? (2-4 sentences. 2.0 points) I think inventory and supplies would get the most funding, because I would need products, and equipment to start the business. I think payroll would get the least funding because I would not hire a lot of people until the business grew large enough. But remodeling would also get a large amount of the money because I would probably have to do that in order to set the salon up the way I need it to be. 2. Review the Financial Statements: Income Statement from Section 9, Lesson 2 of this course. Use the information from the example income statement for Jamie's Bead Jewelry to answer the questions…show more content…
Review the Financial Statements: Balance Sheet from Section 9, Lesson 2 of this course. Use the information from the example balance sheet for Jamie's Bead Jewelry to answer the questions below. a. What is the value of the company's assets? (0.5 points) $2,322.00 b. What is the total of the company's liabilities? (0.5 points) $1,125.00 c. What is the total owner equity? (0.5 points) $1,197.00 4. Calculate the following financial ratios. TIP: If you don't remember how to calculate financial ratios, review the Calculating Financial Ratio pages from Section 9, Lesson 2 of this course. a. A company makes a net profit before tax of $12,000 and has $20,000 in total equity. Calculate the company's return on equity as a percentage. (0.5 points) 60% b. A company makes a net profit before tax of $5,000 and has total assets with a value of $10,000. Calculate the company's return on assets as a percentage. (0.5 points) 50% c. A company has $1,400 in liabilities and $1,500 in assets. Calculate the company's debt ratio as a percentage. (0.5 points) 93.3% d. A company has $1,400 in liabilities and $1,500 in equity. Calculate the company's debt to equity ratio as a percentage. (0.5 points) 93.3% e. A company's current assets are $30,000 and current liabilities are

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