Cornelius opened his Yukon Gold Jewelry Store last year. To get his business sta
ID: 2459158 • Letter: C
Question
Cornelius opened his Yukon Gold Jewelry Store last year. To get his business started, Cornelius purchased a small building, which was valued at $170,000 when he bought it. He took out a $130,000 loan in order to acquire the building. Cornelius then bought $44,850 worth of supplies, $5,525 worth of equipment, and $280,500 worth of merchandise. He took out a $200,000 business loan to purchase these items and covered the rest with his own savings. Cornelius also opened a business bank account with $50,000 of his own money Since opening last year, the value of the building has increased by 3.4% , and Cornelius paid off $145073 of his loan. The value of the equipment has depreciated by 20% while the value of the supplies has remained constant. Cornelius paid off $2,231.89 of his business loan, sold a $224,980 value of his merchandise, and merchandise. He currently owes $75,000 Interest and sales has increased the money in his bank account by 2.3%, what is current ower's equity in his jewelry store? 4,980 value of his merchandise, and purchased (paid for in full) $122.000 of new for a shipment of merchandise that just arrived. Cornelius'sExplanation / Answer
Solution 14;
Last Year's transaction and ownership:
Current Year's transaction and ownership:
Solutions 15: Change in the current ratio since last year: 1.90 - 1.78 = (-) 0.12 times or 6.32%
The current ratio has reduced by 0.12 times since last year. That means assets has reduced darastically.
Detail Loan Amount $ Owner Amount $ Total $ Building 130,000 40,000 170,000 Supplies 44850 Equipment 5525 Merchantise 280500 200,000 130,875 330875 Bank A/c 50,000 50,000 TOTAL 330,000 220,875 551,875 Current Assets $380,875 Current Liabilities $200,000 Current Ratio 1.90 times