The New Dentist S21 A new dentist had a busy first month of business. So much happened the first month that 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 new BMW now that they have their own business. 1 Answer the questions below a) and b) 2 Complete the attached tabular anlysis of the transactions of the business for the period shown below. 3 Prepare Financial Statements for the busienss for the period. a) Did the business make or lose money 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. b) Please give advice to a young dentist who wants to take over an existing Dental business. They have a chance to buy this business. (assets, liabilities, office lease, customers, etc.) How much would you pay to buy this business? Explain your answer. Base your answer only on facts given in this question. Limit your answer to the space below. The New Dentist S21 A new dentist had a busy first month of business. So much happened the first month that 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 new BMW now that they have their own business. 1 Answer the questions below a) and b) 2 Complete the attached tabular anlysis of the transactions of the business for the period shown below. 3 Prepare Financial Statements for the busienss for the period. a) Did the business make or lose money 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. b) Please give advice to a young dentist who wants to take over an existing Dental business. They have a chance to buy this business. (assets, liabilities, office lease, customers, etc.) How much would you pay to buy this business? Explain your answer. Base your answer only on facts given in this question. Limit your answer to the space below
