msgloriaregis
May 13, 2013, 09:57 AM
Prepare a business memo in Word addressed to Mark Zuckerberg discussing the following:
1. AccountBook obtains a $500,000 loan and Mark Zuckerberg contributes $250,000 of his own assets in
Exchange for common stock in the new company.
a. What is the new company’s total amount of liabilities plus equity?
b. What is the new company’s total amount of assets?
2. If the new company earns $80,000 in net income in the first year of operation, compute its return on
Asset (assume average assets equal $750,000). Assess its performance if competitors average a 10%
Return
1. AccountBook obtains a $500,000 loan and Mark Zuckerberg contributes $250,000 of his own assets in
Exchange for common stock in the new company.
a. What is the new company’s total amount of liabilities plus equity?
b. What is the new company’s total amount of assets?
2. If the new company earns $80,000 in net income in the first year of operation, compute its return on
Asset (assume average assets equal $750,000). Assess its performance if competitors average a 10%
Return