Profit for Jim Halliday's Treasures is P250,000 for the current year. The owner withdrew P30,000 per month for personal living expenses. What will be the net effect on the owner's capital account? Increase of P610,000 Increase of P220,000 Increase of P250,000 O Decrease of P110,000 Decrease of P360,000

Profit for Jim Halliday's Treasures is P250,000 for the current year. The owner withdrew P30,000 per month for personal living expenses. What will be the net effect on the owner's capital account? Increase of P610,000 Increase of P220,000 Increase of P250,000 O Decrease of P110,000 Decrease of P360,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

The Allowable Business Investment Loss is __________ of the realized Business Investment Loss in a given year. Question 2 options: a) Same amount b) One-third c) One-half d) One-fifth
Patty, Inc purchases equipment for $52670. The equipment will be depreciated over 8 years with no residual value. Patty's annual cash flow for the year will be $69730. Patty's annual net income will be $
Last week, Ken purchased a painting for $5,000 and paid for it with cash from his checking account. When he got home he realized that the painting's market value was actually $30,000. What is the impact of this transaction on Ken's net worth? Decrease of $5,000 Increase of $5,000 Decrease of $25,000 Increase of $25,0000 Decrease of $30,0000 Increase of $30,0000 No impact
Solve The Correct Answer
Mr. Khalid contributed inventory of OMR 10000 and cash OMR 22000 . His total capital for his new business will : Select one: a. Decrease by OMR 32000 b. Increase by OMR 22000 c. Increase by OMR 32000 d. Increase by OMR 10000
Max Corporation purchased a machine for $80,000 and depreciated it straight-line to zero over its 8-year life. After six years, Max sold the machine for $38,000. If Max has a 21% tax rate, what is the cash flow associated with the sale of the machine? $41,780 $20,000 $35,900 $34,220 $38,000
A company invested P100,000 to purchase a new equipment that wil We used to increase the profit but it is expected to be realized after two years from the year of purchase. The said profit was P50,000 per year for four years. Three years later, the company purchased an add-on to the machine worth P75,000. Due to that add on, the profit increased to P85,000 and lasted for five more years. If the company decided to sell that equipment for P8,000 and MARR is 15% per year
Gold Inc. sold the rights to use one of its patented processes that will result in cash receipts of $2,500 at the end of each of the next four years and a lump sum receipt of $4,000 at the end of the fifth year. The total present value of these payments if interest is at 9% is: Choose the closest answer. A) $14,000. B) $11,468. C) $12,100. D) $10,699. PVA 9% 4 pds 3.23972, PVA 9% 5 pds 4,58720 PV 1 9% 4 pds .72451 . PV 1 % 5 pds .64993
2. The company is setting aside funds to acquire a property for its new warehouse. The company needs P74,735 to make the down payment. The company deposits P5,000/month in the fund account which pays 1% per month. As the financial manager you have been tasked to determine how long it will take to accumulate enough funds to acquire the property?
Subject: accounting
ATCF Operations. You can buy a building for $1,000 and sell it after 10 years for $1,300. (NOI = 60; Annual Depreciation = $45; Ordinary Tax Rate = 40%; Depreciation Recapture Tax = 30%; Capital Gain Tax = 20%) What is your ATCF in year 7? 1. 6 54 !3! C 211 C 254 C 268 C 273 C 489