Tara westmont, the proprietor of tiptoe shoes, had annual revenues of $201,000, expenses of $111,700, and withdrew $24,400 from the business during the current year. the owner’s capital account before closing had a balance of $313,000. the ending owner’s capital balance after closing is:
a. debit retained earnings $89,300, credit income summary $89,300
b. debit retained earnings $313,000; credit income summary $313,000
c. debit income summary $64,900; credit retained earnings $64,900

Ursus, inc., is considering a project that would have a five-year life and would require a $1,650,000 investment in equipment. at the end of five years, the project would terminate and the equipment would have no salvage value. the project would provide net operating income each year as follows (ignore income taxes.):

Which investment has the liquidity and can be converted into cash easily?

Over the past several years, joyce chen has been able to save regularly. as a result, today she has $54,188 in savings and investments. she wants to establish her own business in 5 years and feels she will need $100,000 to do so. a. if she can earn 6% on her money, how much will her $54,188 in savings/investments be worth in 5 years? will joyce have the $100,000 she needs? if not, how much more money will she need? b. given your answer to part a, how much will joyce have to save each year over the next 5 years to accumulate the additional money? assume she can earn interest at a rate of 6%. c. if joyce can afford to save only $4,000 a year then, given your answer to part a, will she have the $100,000 she needs to start her own business in 5 years?