The Total Assets and Total Liabilities of Paul's Pools, a Proprietorship

question 7

Essay

The total assets and total liabilities of Paul's Pools, a proprietorship, at the beginning and at the end of the current fiscal year are as follows:
$\begin{array}{lrr}&\text { January } 1 & \text { December } 31\\\text { Total assets } & \$ 280,000 & \$ 475,000 \\\text { Total liabilities } & 205,000 & 130,000\end{array}$
(a)Determine the amount of net income earned during the year. The owner did not invest any additional assets in the business during the year and made no withdrawals.
(b)Determine the amount of net income during the year. The assets and liabilities at the beginning and end of the year are unchanged from the amounts presented above. However, the owner withdrew $53,000 in cash during the year
(no additional investments).
(c)Determine the amount of net income earned during the year. The assets and liabilities at the beginning and end of the year are unchanged from the amounts presented above. However, the owner invested an additional $35,000 in cash in the business in June of the current fiscal year
(no withdrawals).
(d)Determine the amount of net income earned during the year. The assets and liabilities at the beginning and end of the year are unchanged from the amounts presented above. However, the owner invested an additional $12,000 in cash in August of the current fiscal year and made 12 monthly cash withdrawals of $1,500 each during the year.

Recognize the importance of presentation and communication in crowdfunding campaigns, including the role of video pitches and clear product descriptions.

Acknowledge the challenges and solutions related to product delivery timelines in crowdfunding projects.

Understand the role and benefits of preparing and seeking advice before starting a crowdfunding campaign.

Grasp the importance of the financial arrangement clarity when borrowing from friends and family as it relates to crowdfunding.

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Definitions:

Invested Assets

Resources or funds that have been allocated for investment purposes in various types of assets, such as stocks, bonds, or real estate, aiming for potential returns.

Investment Turnover

A measure of a company's efficiency in using its investments to generate sales, usually calculated as sales divided by average invested assets.

Return On Investment

A measure used to evaluate the efficiency or profitability of an investment, calculated by dividing net profit by the cost of the investment.

Sales To Invested Assets

A financial ratio that measures how efficiently a company uses its invested assets to generate sales.