Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The New Dentist F21 A new dentist starts bus pess. So much happened the first month! They are not sure if they are making profit.

image text in transcribed
The New Dentist F21 A new dentist starts bus pess. So much happened the first month! They are not sure if they are making profit. They had to put money into the business at the start to buy equipment and pay the first month of office rent. Then they fixed a lot of teeth but also had a lot of costs to pay. They think they might be losing money! They put some cash in a business bank account to start. Now they have less money! Of course some money was taken out to pay personal costs during the month - like apartment rent. They want to know if they are making enough money to lease a BMW now that they have their own business. 1 Complete the attached tabular anlysis of the transactions of the business for the period shown below. 2 Prepare Financial Statements for the busienss for the period. 3 Answer the questions below a) b) c) a) Did the business make a Profit for the month? How much? How do you know? Use accouting terms. State specific numbers. Base your answer only on facts given in this question. Limit your answer to the space below. maximum 20 words. 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) The New Dentist F21 A new dentist starts bus pess. So much happened the first month! They are not sure if they are making profit. They had to put money into the business at the start to buy equipment and pay the first month of office rent. Then they fixed a lot of teeth but also had a lot of costs to pay. They think they might be losing money! They put some cash in a business bank account to start. Now they have less money! Of course some money was taken out to pay personal costs during the month - like apartment rent. They want to know if they are making enough money to lease a BMW now that they have their own business. 1 Complete the attached tabular anlysis of the transactions of the business for the period shown below. 2 Prepare Financial Statements for the busienss for the period. 3 Answer the questions below a) b) c) a) Did the business make a Profit for the month? How much? How do you know? Use accouting terms. State specific numbers. Base your answer only on facts given in this question. Limit your answer to the space below. maximum 20 words. 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)

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

Financial Accounting For Undergraduates

Authors: Wallace

4th Edition

1618533088, 9781618533081

More Books

Students also viewed these Accounting questions

Question

13.1 Explain the strategic role of employee benefits.

Answered: 1 week ago