Wanda Weeks Is Tired of Running Her Small Machine Tool

question 14

Essay

Wanda Weeks is tired of running her small machine tool company. She wishes to sell it in order use her time and money elsewhere. She is currently earning a salary of $85,000 per year and a 10% return on her capital investment. She wants to take a job in a bank and invest her capital in a mutual fund. What issues should she look at before making the decision to change careers?

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Definitions:

Financial Statements

Formal records of the financial activities and position of a business, person, or other entity, presented in a structured manner.

Interrelationships

The way in which each of two or more things is related to the other or others.

Income Statement

A financial statement that shows a company's revenues, expenses, and profits over a specific period of time.

Telephone Expense

Costs incurred by a business for the use of telephone services.