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The sole proprietorship form would provide the easiest form.
One should avoid a more complicated form of business unless the characteristics of that form are needed. Its needs for additional funds would probably be minimal in the foreseeable future. Also, the three know each other well and would appear to be contributing equally to the firm. Service firms, like consulting businesses, are frequently formed as partnerships.
However, in order for this business to thrive it will need a substantial investment of funds early. This would suggest the corporate form of business. In order for Mark to maintain control over the business he would need to own more than 50 percent of the voting shares of common stock. In order for the business to grow, he may have to be willing to give up some control.
The income statement provides the most useful information for predicting future performance. The lender would therefore be interested in predicting future net income using the income statement.
It should be noted, however, that the lender would also be very interested in both the balance sheet and statement of cash flowsthe balance sheet because it would show the amount of debt the company had already incurred, as well as assets that could be liquidated to repay the loan.
And the company would be interested in the statement of cash flows because it would provide useful information for predicting the companys ability to generate cash to repay its obligations.
The statement of cash flows can be used to predict the companys future cash-generating ability.
Expenses Salaries and wages expense Supplies expense Maintenance and repairs expense Advertising expense Utilities expense Total expenses Net income Add: Net income Less: Dividends Retained earnings, June Balance Sheet June 30, Assets Cash Accounts receivable Total assets Liabilities and Stockholders Equity Liabilities Notes payable Stockholders equity Common stock Most new businesses choose to build up a cash balance to provide for future operating and investing activities or pay down debt.
Since the boat actually belongs to John Paulusnot to Gabelli Corporationit should not be reported on the corporations balance sheet. Likewise, the boat loan is a personal loan of Johnsnot a liability of Gabelli Corporation.
Stockholders equity Total liabilities and stockholders equity She has no real need to raise funds, and she doesnt need the expertise provided by other partners.
In order for Brittany to maintain control over the business she would need to own more than 50 percent of the voting shares of common stock.
In order for the business to grow, she may have to be willing to give up some control. Also, the two know each other well and would appear to be contributing equally to the firm. The lender would therefore be interested in predicting future income using the income statement.
It should be noted, however, that the lender would also be very interested in both the balance sheet and the statement of cash flowsthe balance sheet because it would show the amount of debt the company had already incurred, as well as assets that could be liquidated to repay the loan.
Calculus 5th Edition Textbook Solutions Chegg. Our solutions are written by Chegg experts so you can be assured of the highest quality! Textbook Cover. Ron Larson and Bruce H. Edwards Publisher: Cengage Learning.
Edwards for up Answers to odd problems only. This new 4th edition Calculus Early Transcendentals, 6e Integration of Rational Functions by Partial Fractions Answers to Odd-Numbered Exercises A Calculus, Sixth Edition, is similar to the present textbook except that the exponential,.
Calculus: Early Transcendentals: site. Many examples and many problems with selected answers.