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Kabbage started in 2005, and since then has made loans to individuals in 14 coun

ID: 2579608 • Letter: K

Question

Kabbage started in 2005, and since then has made loans to individuals in 14 countries.

In 2011 alone, approximately 100,000 loans were made.

This IL based social venture had a total annual revenue of $12,058,555 in 2011.

Its total annual expenses were $10,119,132 while the annual fixed costs to make loans was $5,518,349.

If the total assets of Kabbage was $13,741,224 and the total liabilities were $741,131 then the equity balance for 2011 was (see below and please show your work):

0.27

1.1

3.7

4.4

Explanation / Answer

Total Assets = Total Liabilities + Equity Therefore, $13,741,224 = $741,131 + Equity Equity = $13,741,224 - $741,131 Equity = $13,000,093