ON CURRENT ASSETS ore Equipment 1.000,000 1.200,000 cumulated Depreciation- Store Equipment 265,000 735,000 300,000 TAL NON CURRENTS ASSETS 900,000 TAL ASSETS 3711.60 5.339.540 ABILITIES RRENT LIABILITIES counts Payable aries Payable tes Payable 1.000,000 25,000 10,500 1,090,000 36,000 12,000 TAL CURRENT LIABILUTIES 1,138,000 1,035,500 ON CURRENT LIABILITIES tes Payable 400,000 356,000 356,000 TAL NON-CURRENT LIABILITIES 400,000 TAL LIABILITIES 1538,000 1,391,500 WNER'S EQUITY mels & Feels, Capital 2,175,560 3,948,040 TAL LIABILITIES & OWNER'S EQUITY 3711.560 5339.540
ON CURRENT ASSETS ore Equipment 1.000,000 1.200,000 cumulated Depreciation- Store Equipment 265,000 735,000 300,000 TAL NON CURRENTS ASSETS 900,000 TAL ASSETS 3711.60 5.339.540 ABILITIES RRENT LIABILITIES counts Payable aries Payable tes Payable 1.000,000 25,000 10,500 1,090,000 36,000 12,000 TAL CURRENT LIABILUTIES 1,138,000 1,035,500 ON CURRENT LIABILITIES tes Payable 400,000 356,000 356,000 TAL NON-CURRENT LIABILITIES 400,000 TAL LIABILITIES 1538,000 1,391,500 WNER'S EQUITY mels & Feels, Capital 2,175,560 3,948,040 TAL LIABILITIES & OWNER'S EQUITY 3711.560 5339.540
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Concept explainers
Risk and return
Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary.
Capital Asset Pricing Model
Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.
Question
Trend percentages
Transcribed Image Text:YEAR 1
YEAR 2
ASSETS
CURRENT ASSETS
Cash
1,669,560
2,896,540
Accounts Receivable
Allowance for doubtful accounts
740,000
-16,000
850,000
-20,000
Merchandise Inventory
Supplies
470,000
610,000
70,000
93,000
Prepaid Rent
TOTAL CURRENT ASSETS
45,000
10,000
2,978,560
4,439,540
NON-CURRENT ASSETS
1,000,000
Store Equipment
Accumulated Depreciation- Store Equipment
TOTAL NON-CURRENTS ASSETS
1,200,000
-265,000
-300,000
735,000
900,000
TOTAL ASSETS
3,713,560
5,339,540
LIABILITIES
CURRENT LIABILITIES
1,090,000
Accounts Payable
Salaries Payable
1,000,000
25,000
36,000
Utilities Payable
12,000
10,500
TOTAL CURRENT LIABILITIES
1,138,000
1,035,500
NON-CURRENT LIABILITIES
Notes Payable
400,000
356,000
356,000
TOTAL NON-CURRENT LIABILITIES
400,000
TOTAL LIABILITIES
1,538,000
1,391,500
OWNER'S EQUITY
Heels & Feels, Capital
2,175,560
3,948,040
TOTAL LIABILITIES & OWNER'S EQUITY
3,713,560
5339,540
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