Chris Bergman Chapter 1 homework

Chris Bergman Chapter 1 homework - Chris Bergman Principles...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Chris Bergman Principles of Finance SECTION 25049 OPC 004 September 29, 2008 [email protected] 210-259-3921 Chapter 1 Assignment 1) a. Since Mrs. Harper is the sole proprietor of Southwest Development Company, she has unlimited liability. This means that she could lose her total wealth to be taken in order to payoff the company’s $60,000 debt, and satisfy creditors. b. Mrs. Harper would still have unlimited liability, and would be responsible for Mr. Blacks portion of the debt if he could not pay for it. c. She will only lose her $25,000 share in the company. 3) a. Thomas Book Sales Inc. income statement for the year ended 12/31 Sales Revenue $760,000 Less: Cost $300,000 Net Profit $20,000 ======= (-1 answer $760-300=$460K) b. Thomas Book Sales Inc. Cash flow statement For the year ended 12/31 Cash inflow $690,000 Less: Cash outflow 300,000 Net cash flow ($390,000) ======== c. Cash flow statements are more useful for financial managers. 4)
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Background image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/02/2009 for the course BUSG 1303 taught by Professor Schwartz during the Fall '08 term at University of Cincinnati.

Page1 / 2

Chris Bergman Chapter 1 homework - Chris Bergman Principles...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online