90.2K

Verified Solution

Link Copied!

CHAP 1 Q3

CHAP2 Q2

Businesses can be classified into the following forms: proprietorship, partnership, corporation, limited liability company (LLC), and limited liability partnership (LLP). Different forms of businesses have different characteristics. Which of the following characteristics belong to a partnership? Check all that apply. Taxed at individual (personal) level Legal arrangement between two or more people Chartered by state and is its own entity, separate from its owners Profits and liability distributed according to a formal or informal agreement You see and read about different kinds of businesses every day. The following scenarios describe two businesses. Use the description of each business to classify it as a proprietorship, partnership, corporation, or limited liability partnership and/or limited liability company (LLP/LLC). Business #1: Cosmopolitan Consulting has five consultants in the firm. The company's annual revenue is approximately $500,000. The company's income is distributed equally among all five consultants. Each owner is personally liable for claims against the business if the firm's assets are insufficient to settle the debt. This is an example of: O A proprietorship O A corporation An LLP/LLC O A partnership Business #2: Andres is self-employed and reports all of his business-related income and expenses on his personal tax return. This is an example of: A proprietorship An LLP/LLC A corporation A partnership The balance sheet provides a snapshot of the financial condition of a company. Investors and analysts use the information given on the balance sheet and other financial statements to make several interpretations regarding the company's financial condition and performance. Cold Goose Metal Works Inc. is a hypothetical company. Suppose it has the following balance sheet items reported at the end of its first year of operation. For the second year, some parts are still incomplete. Use the information given to complete the balance sheets for Cold Goose Metal Works Inc. for the years ending December 31, Year 2 and 1, respectively. Cold Goose Metal Works Inc. Balance Sheet For the Year ended December 31 Year 2 Year 1 Year 2 Year 1 Assets Current assets: Cash and equivalents Accounts receivable Inventories Total current assets Net fixed assets: Net plant and equipment $42,188 $123,750 $281,250 $92,250 $33,750 599,000 $225,000 $0 $5,859 $33,203 Liabilities and equity Current liabilities: Accounts payable Accruals Notes payable Total current liabilities Long-term debt Total debt Common equity: Common stock Retained earnings Total common equity Total liabilities and equity $0 SO 531,250 531,250 593,750 $125,000 $117,188 $156,250 $275,000 $304,688 S243,750 $131,250 $375,000 $500,000 equity $468,750 $625,000 Total assets $625,000 $500,000 Given the information in the preceding balance sheet-and assuming that Cold Goose Metal Works Inc. has 50 million shares of common stock outstanding-read each of the following statements, then identify the selection that best interprets the information conveyed by the balance sheet

Answer & Explanation Solved by verified expert

See Answer