Cornelius opened his Yukon Gold Jewelry Store last year. To get his business sta

Question

Cornelius opened his Yukon Gold Jewelry Store last year. To get his business started, Cornelius purchased a small building, which was valued at $170,000 when he bought it. He took out a $130,000 loan in order to acquire the building. Cornelius then bought $44,850 worth of supplies, $5,525 worth of equipment, and $280,500 worth of merchandise. He took out a $200,000 business loan to purchase these items and covered the rest with his own savings. Cornelius also opened a business bank account with $50,000 of his own money Since opening last year, the value of the building has increased by 3.4% , and Cornelius paid off $145073 of his loan. The value of the equipment has depreciated by 20% while the value of the supplies has remained constant. Cornelius paid off $2,231.89 of his business loan, sold a $224,980 value of his merchandise, and merchandise. He currently owes $75,000 Interest and sales has increased the money in his bank account by 2.3%, what is current ower's equity in his jewelry store? 4,980 value of his merchandise, and purchased (paid for in full) $122.000 of new for a shipment of merchandise that just arrived. Cornelius's

Explanation / Answer

Solution 14;

Last Year's transaction and ownership:

Current Year's transaction and ownership:

Solutions 15: Change in the current ratio since last year: 1.90 - 1.78 = (-) 0.12 times or 6.32%

The current ratio has reduced by 0.12 times since last year. That means assets has reduced darastically.

  

Detail Loan Amount $ Owner Amount $ Total $ Building 130,000 40,000 170,000 Supplies 44850 Equipment 5525 Merchantise 280500 200,000 130,875 330875 Bank A/c    50,000 50,000 TOTAL 330,000 220,875 551,875 Current Assets $380,875 Current Liabilities $200,000 Current Ratio 1.90 times

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