*****Below are the answers for questions 1-7. please answer Questions 7-9*****

1) SARA have her personal saving and some external amount from his grandparents. This is called a "cash in hand" asset. Yes the asset is equal to 3month of operating expenses even Sara have more .

A) The Sara operating expenses is internet, phone bill , heat electricity water and house rent

B) the cash asset required for 3 months opery expenses is $716.7 (approx)

2) Inventory refers to all the items, goods, merchandise, and materials held by a business for selling in the market to earn a profit

3) Total current assets is the aggregate amount of all cash, receivables, prepaid expenses, and inventory on an organization's balance sheet

4) Long-term assets (also called fixed or capital assets) are those a business can expect to use, replace and/or convert to cash beyond the normal operating cycle of at least 12 months

* NO ,Sara have estimated all the equipment she does not left anything.SHE HAVE not include anything incorrectly.

5) Total assets refers to the total amount of assets owned by a person or entity.

6) Sara capital investing into the company is $15000.

ASSENT Cash LLARLITIES AND EQUITY SO 1 eestion 1 Bank loan 17 Oct 2 Inventory Son Current Awets Curre 77 Question 3 Liabilities 5 Long-Term Aucts Equity: Equipment Que 4 Owner Capital 77 67 TOTAL ASSETS Question L. & EQUITY 2 Question Based on the information Sarah provided above, complete the Balance Sheet by answering these guided questions. Answer below each question and also fill in the Balance Sheet table above. Make sure you show ALL of your work towards the answer - in words or numbers. What cash assets should Sarah have on hand. These assets should equal 3 months of operating expenses. Determine Sarah's Total Operating Expenses (1 point) How much cash assets required for 3 months of operating expenses? (1.5 points) 2. What is the inventory? (1 point) What are Total Current Assets? (1 point) What are Long-Term Assets? Equipment? (I point). .. Has Sarah correctly estimated her equipment? Is there any she may have left out? Is there anything she may have included incorrectly? (2 points - note you do not need to correct any problems - just point them out). What are Total Assets? (1 point) 6. What is Sarah's capital investment into the company - the equity she is putting in? (1.5 points) 7. We are planning on a projected "balanced" bottom line. That means that Assets must equal Liabilities Equity. What are the companies III. S points) 8. What dollar amount should Sarah seek as a bank loan? (2 points) 9. What are the current liabilities? (1 point)