Suppose that you are the president of allied equipment your

Assignment Help Accounting Basics

Reference no: EM13603821

These financial statement items are for Barone Corporation at year-end, July 31, 2010.

Salaries payable $2,080
Salaries expense 51,700
Utilities expense 22,600
Equipment 18,500
Accounts payable 4,100
Commission revenue 66,100
Rent revenue 8,500
Long-term note payable 1,800
Common Stock 16,000
Cash 29,200
Accounts receivable 9,780
Accumulated depreciation 6,000
Dividends 4,000
Depreciation expense 4,000
Retained earnings (beginning of the year) 35,200

Suppose that you are the president of Allied Equipment. Your sales manager hasc approahed you with a proposal to sell $20,000 of equipment to Barone. He would like to provide a loan to Barone in the form of a 10%, 5-year note payable. Evaluate how this loan would change Barone's current ratio and debt to total assets ratio, and discuss whether you would make the sale. Refer to E2-8 (a-c).

Reference no: EM13603821

Questions Cloud

If the x component of acceleration is a14t2ms2 where t is : a rocket is fired from rest at x0 and travels along a parabolic trajectory described by y2120103xm. if the x component

Sonoma winery has fixed costs of 12000 per year its : 1sonoma winery has fixed costs of 12000 per year. its warehouse sells wine with variable costs of 80 of its unit

Super sales company is the exclusive distributor for a : super sales company is the exclusive distributor for a revolutionary bookbag. the product sells for 60 per unit and has

The coefficient of restitution of the impact is e 5 : the 10-kg mass a is moving at 5 ms when it is 1 m from the stsaionary 10 kg mass b. the coefficiient of kinetic

Suppose that you are the president of allied equipment your : these financial statement items are for barone corporation at year-end july 31 2010.salaries payable 2080salaries

Determine the heat transfer rate in and out of the cycle : a heat pump cycle operates between a geothemial reservoir and your house. the cycle requires 200 kw to operate with a

A 60 kg skier leaves the end of a ski-jump ramp with a : a 60 kg skier leaves the end of a ski-jump ramp with a velocity of 24 ms directed 25 degrees above the horizontal.

In the arnolds muffler example for the exponential : in the arnolds muffler example for the exponential distribution in this chapter the average rate of service was given

1 a paired difference experiment consists of n 18 : 1 a paired difference experiment consists of n 18 pairs d5.7 and s2d 256. suppose you wish to detect ?dgt 0.a.

User Account

All Pages