Annie's Attic Has the Following Account Balances for the Dates

question 51

Essay

Annie's Attic has the following account balances for the dates given:
$$\begin{array} { | l | r | r | } \hline & \text { September 1 } & \text { September 30 } \\\hline \text { Cash } & \$ 40,000 & 60,000 \\\hline \text { Accounts Receivable } & 40,000 & 38,000 \\\hline \text { Accounts Payable } & 6,000 & ? \\\hline\end{array}$$
Its net income for September 1 through September 31 was $20,000 and there were no investments by the owners or dividends paid. Determine the equity at both September 1 and September 30.

Grasp the concept of private placements and their exemption from registration.

Understand the legal consequences, including potential liability, of non-compliance with securities laws.

Recognize the scope and limitation of securities law in regulating insider trading and corporate governance.

Grasp the enforcement mechanisms and penalties available to the SEC for violations of securities laws.

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Definitions:

Net Income

The remaining profit for a company after removing all costs and tax obligations from the overall revenue.

Insignificant Influence

A situation where an investor does not have significant control or influence over the operations and management of a company in which they hold an investment.

Stock Investments

Shares of ownership in a company or a financial asset, representing a claim on its earnings and assets.

Insignificant Influence

A financial accounting term used to describe an investor's inability to exert control or significant influence over the operating and financial policies of another company.