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please show calculations Inceme Statemiret fir year malne 1231/200x: Harrier lalweio Rabne Swer for 13ucuor Awh Camardaper Fisulanuty Lahilives andonnr? Equit Camse liablion Ounvi) Equin

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Inceme Statemiret fir year malne 1231/200x: Harrier lalweio Rabne Swer for 13ucuor Awh Camardaper Fisulanuty Lahilives andonnr? Equit Camse liablion Ounvi) Equin Retaind carning Tixid Onters' Eiduey Fere Auding and fyoutien To see if he really understands what 's going on, Bob asked Richand the following questions. Richard answered wost of them comrectly, can you? 1. How much nevenue did the business produce? 2. What costs did the business have for financing? 3. What can you turn into cash in one year? 4. What did it cost to make your prokluct? 5. What is the uilue of eventhing the company onns? 6. How much profir did the company make? 7. How much is the business worth to Richard? 8. How much does the buciness need for its continuing operation? Hint: Net Foxed Assets is the purchase price of all fixed assets (Land, buildings, cquipment, machinery, vehicles, leasehold improvements) less accumulated Depreciation 9. What dehts will take longer than a year to pay? 10. Can this business be considered liguid? Hint: Current ratio = current assets / current liabilities By the rule of thumb, it should be 2 or greater. The current ratio is an indicator of a business' ability to repay debt when it is due 3

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