Ask Experts Questions for FREE Help !
Ask
    smartangel88's Avatar
    smartangel88 Posts: 6, Reputation: 1
    New Member
     
    #1

    Feb 8, 2008, 06:12 PM
    Need answer
    Jim Ault established Ault's Dry Cleaners, a sole proprietorship, by investing $1000 on January 1. During the first year of operation, the business generated net income of $42000. The ending balance of the capital account was $20000. What was the amount of the cash Jim withdrew for personal use during the year?
    a.$0
    b.$1000
    c.$20,000
    d.$23000
    JBeaucaire's Avatar
    JBeaucaire Posts: 5,426, Reputation: 997
    Software Expert
     
    #2

    Feb 8, 2008, 06:16 PM
    Income - $42000 + $1000 (initial investment) - $20000 (current balance)

    EDIT: Sheesh, get out a calculator and input the formula above (without the words).
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
     
    #3

    Feb 9, 2008, 10:37 PM
    smartangel, I think the point is for you to figure out the answer yourself and not have someone else do all your work for you. JB has already given away the equation itself. Do you need someone to also put it in your calculator for you? I tutor at the college level and end up with an incredible amount of students incapable of doing basic math. This is probably why. (Sorry, but if you want to get through school, you need to deal with that truth.)

    You've been given a beginning balance. What does net income do to capital/equity? And what would a withdrawal do to it? The best way to solve these is to put in the ones you know. i.e. if you know something adds to the account, then add it, and if you know something subtracts, then subtract it. When you've done all you can and you now have that sub-total and an ending balance, then you have to think: what number would you put in to get from your sub-total TO that ending balance? i.e. if I had 10 apples and I now have 7 apples, how many must I have taken away? I know apples seem elementary, but it's the same math, whether it's apples or capital accounts. If you can see that, it becomes a lot easier.
    JBeaucaire's Avatar
    JBeaucaire Posts: 5,426, Reputation: 997
    Software Expert
     
    #4

    Feb 9, 2008, 11:55 PM
    I'm having trouble deciphering this person's forum name.

Not your question? Ask your question View similar questions

 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

If the correct answer is May cgs, $15,500 how is the answer correct need to see work [ 1 Answers ]

P23-A The budget committee of Vinning office supply Co. Has assembled the following data. As the business manager, you must prepare the budgeted income statements for May and Jun 2006. A. Sales in April were $42,100.. You forecast that monthly sales will increase 2.0% in May and 2.4% in June.

I'm looking for an answer [ 5 Answers ]

What is a open field system I don't no

Need as answer [ 5 Answers ]

My son has his father's last name and I had to get permission from him to move out of the country with my son. If I change my son's last name to my last name can he move then with me out of the country with no problems? Can someone help me?

What should the answer be? [ 5 Answers ]

To make a bread sandwich does it take 2 or 3 pieces of bread to make it I say 3 because you have the two pieces for the outside and another piece for the filling What's your opion:confused:

What is the answer? [ 1 Answers ]

I have a math apaper for homework! It is soooo confusing! It is 15x14 in the distributive property!! :confused: :confused: :confused: :confused:


View more questions Search