Prompt: Answer the three questions (your response should be a minimum of 150 words), and submit answers to the problems.
From a Christian worldview, and incorporating the assigned scripture, what does it mean to be ethical in business dealings and corporate governance?
What is the balance sheet identity? Discuss the book value of a firm versus its market value. What is meant by financial leverage? What is the definition of a noncash item and describe one noncash item on the income statement?
BU, Inc. has current assets of $6,050, net fixed assets of $24,750, long-term debt of $11,400, and current liabilities of $4500. What is the value of the shareholders’ equity account for the firm? What is the net working capital?
Salty Chips has sales of $862,000, operating costs of $85,000, depreciation expense of $41,000, interest expense of $40,500 and a tax rate of 20%. What is the net income? What if the firm paid out $125,000 in cash dividends? What is the addition to retained earnings?
Cost of goods sold
Short-term Notes Payable
Net fixed assets
Create the Income Statement and Balance Sheet for 2020.