Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

13 Problem 1-10 (Static) Lanni Products is a start-up computer software development firm. It currently owns computer equipment worth $30,000 and has cash on hand

image text in transcribed
image text in transcribed
image text in transcribed
13 Problem 1-10 (Static) Lanni Products is a start-up computer software development firm. It currently owns computer equipment worth $30,000 and has cash on hand of $20,000 contributed by Lanni's owners. Lanni takes out a bank loan. It receives $50,000 in cash and signs a note promising to pay back the loan over three years ellook Lanni uses the cash from the bank plus $20,000 of its own funds to finance the development of new financial planning software Lanni sells the software product to Microsoft, which will market it to the public under the Microsoft name. Lanni accepts payment in the form of 1,000 shares of Microsoft stock. Lanni sells the shares of stock for $140 per share and uses part of the proceeds to pay off the bank loan. Pro Required: a-1. Prepare its balance sheet just after it gets the bank loan References Assets Ts Liabilities & Shareholders Equity s 70,000 Bank loan 50,000 Cash Computers Total 50.000 30,000 Shareholders' equity 100,000 Total $ S 100,000 a-2. What is the ratio of real assets to total assets? (Round your answer to 1 decimal place.) Ratio of real to total assets 03 6 points 13 point allock References b-1. Prepare the balance sheet after Lanni spends the $70,000 to develop its software product, with the software valued at cost Assets Liables & Shareholders Equity Software product Bank loan Computers Total Shareholders' equity Total b-2. What is the ratio of real assets to total assets? (Round your answer to 1 decimal place.) Ratio of real to total asset c-1. Prepare the balance sheet after Lanni accepts the payment of shares from Microsoft. Asses Liabilities & Shareholders' Equity Microsoft shares Bank loan Computers Shareholders' equity Total Total Check my work points eBook Print References Ratio of real to total assets c-1. Prepare the balance sheet after Lanni accepts the payment of shares from Microsoft. Assets Liabilities & Shareholders' Equity Bank loan Microsoft shares Computers Total Shareholders' equity Total c-2. What is the ratio of real assets to total assets? (Round your answer to 2 decimal places.) Ratio of real to total assets

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions

Question

What is the idea of fairness based on fair rules?

Answered: 1 week ago

Question

Write a program that displays the table below

Answered: 1 week ago

Question

Finding and scheduling appointments with new prospective clients.

Answered: 1 week ago