Amy - FIN504.Johnson.A.Mod1 (1).xlsx - Liability...

Liability comparisons Meridith Harper has invested $25,000 in Southwest Development Company. The firm h
Merideth in each of the following situations.
As a sole proprietor, Ms. Harper has unlimited liability over the debts of her company, essentially any creditor
Regardles off the 50-50 partnership, Ms. Harper still has unlimited liability. Any creditor can file a claim agai
The benefit of Southwest Development Company being a corporation, Ms. Harber has more protection over he
A. Southwest Development Company is a sole proprietorship owned by Ms. Harper.
B. Southwest Development Company is a 50-50 partnership of Ms. Harper and Christopher Black.
C. Southwest Development Company is a corporation .

has recently declard bankrupcty and has $60,000 in unpaid debts. Explain the nature of payments, if any, by
r can file a claim against her peronsal assets to satisfy debts relating to her bankruptcy
inst her personal assets to pay of the company debt.

A. Determine Jane’s total cash inflows and cash outflows.
B. Determine the net cash flow for the month of August. C. If there is a shortage, what are a few options to Jane?
Jane does have a suprlus of $593.00. The bank offers an interest bearing account. It would be beneficial for J
for months down the road if she would have a shortage she would have made money with the interest earned.
D. If there is a surplus, what would be a prudent strategy for her to follow?

of her expense could be eliminated. Her dining expense was $500, and her Clothing was $1,000.00 Reducing
Jane to put this money in the account to accrue interest. This could be beneficial