Question
In: Finance
1.If profit after tax and interest is $400,000; interest expense is $50,000 and taxation expense is...
1.If profit after tax and interest is $400,000; interest expense is $50,000 and taxation expense is $84,000; profit before interest and tax is:
2.If the beginning balance of equity is $82,000; the ending balance is $37,000; and the loss for the period is $33,000; how much did the owner withdraw during the period for personal use?
3.The balance sheet usually reports the entity's financial position for both the current period and the previous period. This information is known as:
Solutions
Expert Solution
1. If profit after tax and interest is $400,000; interest expense is $50,000 and taxation expense is $84,000; profit before interest and tax is:
Profit before interest and tax = profit after tax and interest + interest expense + taxation expense
Where,
Profit after tax and interest = $400,000
Interest expense = $50,000
Taxation expense = $84,000
Therefore,
Profit before interest and tax =$400,000 + $50,000 + $84,000
= $534,000
The profit before interest and tax is $534,000
2. If the beginning balance of equity is $82,000; the ending balance is $37,000; and the loss for the period is $33,000; how much did the owner withdraw during the period for personal use?
Owner’s withdrawal during the period for personal use = The beginning balance of equity - The ending balance of equity - The loss for the period
Where,
The beginning balance of equity = $82,000
The ending balance of equity = $37,000
The loss for the period = $33,000
Therefore,
Owner’s withdrawal during the period for personal use = $82,000 - $37,000 - $33,000
= $12,000
Therefore the owner withdraw $12,000 during the period for personal use
3. The balance sheet usually reports the entity's financial position for both the current period and the previous period. This information is known as the statement of financial position.
A balance sheet is a financial statement that summarizes the firm’s assets, its liabilities and shareholders' equity at a particular date including both the current period and the previous period. This information is known as the statement of financial position.
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