Module 1 Homework 0 Requlred Informetion The foillowing info

Module 1 Homework 0 Requlred Informetion The foillowing information appltes to the questions displayed below Maben Company was started on January t 20 , and experenced the tolong events during its first year of operator 1 Acquired $35,000 cash from the Issue of common stock 2 Borrowed $47000 cash from National Bank 3. Eamed cash revenues of $63,000 for performing services 4 Paid cash expenses of $52.500 Paid a $2.500 cash dividend to the stockholders 6. Acquired an additional $35,000 cash from the issue of common stock 7 Paid $12.000 cash to reduce the pnincipal balance of the bank note Paid $46.000 cash to purchase land 9 Determined that the market value of the land iS $64.000 t Determine the percentage of assets hat were provided by investors, creditors, and earnings. (Round your answers to 2 declimeal piaces amiegs

Solution

In the question above We need to first check for the total asset for which there is outflow of cash and also we need to determine total inflow of cash to the company.

Total money raised through issue of common stock = $35,000+ $35,000 = $70,000

Total money raised through creditors = $47,000 - 12000 (paid back) = 35000

Total Earnings for the business = $63,000(earned cash revenue) - 52500 (Paid cash expenses) - 2500(Dividend paid) = 8000

Total Value of assets = Cash balance + Land Value

Cash Balance = $35000 (issue of common stock)+ $47000 (Bank Loan)+$63000(Cash Revenues)- $52500(Paid cash expenses)-$2500 (Cash Dividends) +$35,000(issue of common stock) - $12,000(Paid to reduce bank note) - $ 46000(Purchase of land)

Cash Balance = $67,000

Value of land = 46000 (recorded at book value)

Total assets = 67000+46000 = $113,000

%age of contribution by investors = 70000/113,000 = 61.20%

%age contribution by Creditors = 35000/113,000 *100 = 30.97%

%age contribution by Earnings = 8000/113000*100 = 7.08%