<span>$161,000
This is a simple matter of addition and subtraction.
Starting capital: $147,000
Generated revenue: $48,000. Add to total giving $195,000
Expenses: $26,000. Subtract from total giving $169,000
Purchased equipment: $5,000. Subtract from total giving $164,000
Withdrew cash: $3,000. Subtract from total giving $161,000</span>
That statement is true
For example if you lend $ 100,000 to your friend with 10% interest rate per year,
The initial $ 100,000 is the one that you consider as principle.
Meanwhile the amount of money that considered as interest is $100,000 x 10% = $ 10,000 per year.
<h3>In the above scenario, World Corp. engaging in Compensation trade
</h3>
Explanation:
Compensation trade is a type of countertrade procedure in which an incoming investment is repaid from the income generated by that investment.
In compensation trade, an investor is repaid by a share of the proceeds or outcomes produced by the goods and services provided by the investor.
Compensation trade is a type of barter where one of the flows is partly in commodities and partly in hard currency.
World Corp. take partial payment for the plant in the form of lumber products produced at the plant is a Compensation trade.
Answer: c. Total Assets/ Equity
Explanation:
To measure the Return on Equity with 3 ratios, the <em>DuPont Analysis</em> can be used. This is a technique of deconstructing the Return on Equity ratio into various constituent ratios so that their effect on Return on Equity is better know.
The basic DuPont Analysis is;
Return on Equity = 
Total Assets/ Equity or the Assets to Shareholder Equity ratio is the answer.
Answer: $385800
Explanation:
The amount of the cash flow to creditors will be calculated thus:
Begining total liabilities = $225000
Ending total liabilities = $200000
Interest = $360800
Cash flow to creditors will be:
= Begining total liabilities - Ending total liabilities + Interest
= $225000 - $200000 + $360800
= $385800
