A new dentist starts business. So much happened the first month! They are not sure if they are making profit. 'They put money in the business at the end of last month to buy equipment, supplies and pay the first month rent. 'Then they worked on a lot of teeth but also had a lot of costs. They think they might be losing money! 'At the end of the first month it seems they have less money than the start! 'Some money was taken out to pay personal costs during the month (their apartment rent, food, etc.) 'They want to know if they are making enough money to lease a BMW now that they have their own business.
Please answer b & c given the financial statements below.
.
Dentist Office Balance Sheet September 30, 2022 Dentist Office Income Statement Dentist Office Statement of Changes in Owners Equity For the month ended September 30, 2022 \begin{tabular}{|l|ll|} \hline Beginning Capital & $ & 10,000.00 \\ \hline new investments by owner in the period & & \\ \hline Profit for the period & $ & 7,200.00 \\ \hline Drawings by the owner & & \\ \hline Ending Capital & $ & (4,000.00) \\ \cline { 1 - 4 } & & $13,200.00 \\ \hline \hline \end{tabular} b) How much would you pay to buy this business? Explain your answer. Please give advice to a young dentist who wants to take over an existing Dental business. They have a chance to buy this very new business. (assets, liabilities, office lease, customers, etc.) Base your answer only on facts given in this question. Limit your answer to the space below. maximum 40 words. (hopefully less than 20 - just the basics here) c) Can the owner afford to lease a BMW car for $600 per month plus insurance $300 per month? Explain. The owner needs $4,000 per month to pay living costs (rent, food, clothes, gym, etc) and also another $1,000 per month to repay student loans. The business has to pay $2,000 per month for its note payable loan. Base your answer only on facts given in this question. Limit your answer to the space below. max 20 words. Only facts. Introductory accounting, not advanced financial planning. (mainly summarize $ how much they will spend and where money will come from) Dentist Office Balance Sheet September 30, 2022 Dentist Office Income Statement Dentist Office Statement of Changes in Owners Equity For the month ended September 30, 2022 \begin{tabular}{|l|ll|} \hline Beginning Capital & $ & 10,000.00 \\ \hline new investments by owner in the period & & \\ \hline Profit for the period & $ & 7,200.00 \\ \hline Drawings by the owner & & \\ \hline Ending Capital & $ & (4,000.00) \\ \cline { 1 - 4 } & & $13,200.00 \\ \hline \hline \end{tabular} b) How much would you pay to buy this business? Explain your answer. Please give advice to a young dentist who wants to take over an existing Dental business. They have a chance to buy this very new business. (assets, liabilities, office lease, customers, etc.) Base your answer only on facts given in this question. Limit your answer to the space below. maximum 40 words. (hopefully less than 20 - just the basics here) c) Can the owner afford to lease a BMW car for $600 per month plus insurance $300 per month? Explain. The owner needs $4,000 per month to pay living costs (rent, food, clothes, gym, etc) and also another $1,000 per month to repay student loans. The business has to pay $2,000 per month for its note payable loan. Base your answer only on facts given in this question. Limit your answer to the space below. max 20 words. Only facts. Introductory accounting, not advanced financial planning. (mainly summarize $ how much they will spend and where money will come from)
