What is the value of total assets when: Expenses £40,000, Liabilities £20,000, Capital £10,000 and Income...

What is the value of total assets when: Expenses £40,000, Liabilities £20,000, Capital £10,000 and Income £60,000.

Expert Solution

Answer)

Calculation of total Assets

Total Assets = Closing Balance of Capital + Liabilities

= £ 30,000 + £ 20,000

= £ 50,000

Therefore the value of total assets is £ 50,000

Working Note:

Calculation of Closing balance of Capital

Closing balance of capital = Beginning balance of Capital + Income – Expenses

= £ 10,000 + £ 60,000 - £ 40,000

= £ 30,000

Therefore the closing balance of capital is £ 30,000.

ekkarill92 answered 1 day ago

Assets total $100,000 and liabilities total $20,000. What is the equity of the business? $800 $8,000 ...

Assets total $100,000 and liabilities total $20,000. What is the equity of the business? $800 $8,000 $80,000 $88,000 None of the above If during the accounting period the assets decreased by $10,000, and equity increased by $2,000, then how did liabilities change? Increased by $12,000 Increased by $8,000 Decreased by $12,000 Decreased by $8,000 Decreased by $6,000 If during the accounting period the assets increased by $14,000, and equity increased by $4,000, then how did liabilities change? Increased by $10,000 ...

If total assets of Brooks Corporation are $100,000, total liabilities are $17,000, and capital stock is...

If total assets of Brooks Corporation are $100,000, total liabilities are $17,000, and capital stock is $20,000, how much are the retained earnings of Brooks Corporation?

If a business has $100,000 in net income, $20,000 in advertising expenses, $10,000 in accounting fees,...

If a business has $100,000 in net income, $20,000 in advertising expenses, $10,000 in accounting fees, and a $40,000 positive effect in foreign currency adjustments, then what is their comprehensive income?

The elements of financial statements as per the AASB Framework are assets, liabilities, expenses, income and...

The elements of financial statements as per the AASB Framework are assets, liabilities, expenses, income and equity. Refer to RQ2.19 and RQ2.20 and Deegan, pages 65 to 73, as well as the AASB Framework for the definitions and recognition criteria of the various elements. Assuming each of the following scenarios is material, use the AASB Framework to justify if the items meet any of the definition of assets, liabilities, equity, income or expenses. Provide the reason(s) for your view with...

Ratios are another amazing way to notice variances in assets, liabilities, income, and expenses. There are...

Ratios are another amazing way to notice variances in assets, liabilities, income, and expenses. There are tons of different ratios we could look at but let’s take a couple and examine them for Simply Yoga. Take a look at their balance sheet. Current Assets: Cash9550Accounts Receivable900Prepaid Expenses1100Total Current Assets11550 Property and Equipment: Yoga Props (less accum depr)1500Total property and Equip.1500Total Assets13050 Current Liabilities: Accounts Payable710Payroll Taes Payable672Payroll Taxes Payable1382Total Current Liabilities Long Term Liabilities Loan Payable6500 Stockholder’s Equity Common Stock1000Retained Earnings4186Total Equity5168Total Liabilities13050 Let’s talk first about the working...

A bank's balance sheet equates the value of total assets to the sum of total liabilities...

A bank's balance sheet equates the value of total assets to the sum of total liabilities and equity capital. (T/F) Negotiable certificates of deposit (CDs) do not have an active secondary market. (T/F) In a bankruptcy situation, the Federal Reserve acts as the liquidator of the bank. (T/F) International expansion for financial institutions coming from highly integrated countries maximizes the risk diversification. (T/F) The financial crisis of 2008, demonstrated that activities such as trading in financial futures and interest-rate swaps...

18. If a not-for-profit clinic has $70,000 in assets and $40,000 in liabilities, what is their...

18. If a not-for-profit clinic has $70,000 in assets and $40,000 in liabilities, what is their equity balance? 12. What are the differences between the income statement and balance sheet in regard to timing and organization? 19. Should financial statement and operating indicator analyses be conducted only on historical data? 20. What is the difference between trend analysis and comparative analysis? 13. What are the three major categories of assets?

3. If your total assets equal $87,000 and your total liabilities equal $10,000, your solvency ratio...

3. If your total assets equal $87,000 and your total liabilities equal $10,000, your solvency ratio is a. 11.5%. b. 13.0%. c. 77.0%. d. 87.0%. e. 88.5%. 4. Which of the following are reasons people lease vehicles? a. Leasing is generally less expensive than buying. b. Monthly payments for leases are generally less expensive than loan payments. c. One can afford a more expensive car with the same monthly payment by leasing rather than buying. d. b and c only...

Total Assets $7,082,500 Total Liabilities 1,700,000 Common Stock 1,250,000 Additional Paid in Capital 2,097,500 Donated Capital...

Total Assets $7,082,500 Total Liabilities 1,700,000 Common Stock 1,250,000 Additional Paid in Capital 2,097,500 Donated Capital 90,000 Ret. Earnings 1/1/Year4 1,650,000 Net Sales 6,250,000 Cost of Sales 3,750,000 Selling & Adm Expenses 1,212,500 Interest Expense 122,500 gain on sale of LT Investments 130,000 Income Tax Expense 300,000 Loss on Disposition of Plant Assets 225,000 Loss due to Earthquake Damage 475,000 Pucket Corp. is in the process of preparing its financial statements for the year ended December 31, Year4. Before closing...

total assets are worth $3,500,000 while they have a working capital of $4,200,000. Their liabilities stand...

total assets are worth $3,500,000 while they have a working capital of $4,200,000. Their liabilities stand at $5,000,000 while retained earnings amount to $800,000. Earnings Before Interest and Tax come to $6,500,000. Sales total $8,300,000 while the market value of equity is $7,000,000. Find Altman Z score , and explain the level of this score

Question