Maurice Tutor

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    Argosy University/ Phoniex University/
    Nov-2005 - Oct-2011

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    Phoniex University
    Oct-2001 - Nov-2016

Category > Accounting Posted 04 Aug 2017 My Price 7.00

retarial services

Decision Case 2-3 Analysis of Cash Flow for a Small Business

Charles, a financial consultant, has been self-employed for two years. His list of clients has grown, and he is earning a reputation as a shrewd investor. Charles rents a small office, uses the pool sec- retarial services, and has purchased a car that he is depreciating over three years. The following income statements cover Charles’s first two years of business:

Year 1                   Year 2

 

 

Commissions revenue

$ 25,000

 

$65,000

 

Rent

$ 12,000

 

$12,000

 

Secretarial services

3,000

 

9,000

 

Car expenses, gas, insurance

6,000

 

6,500

 

Depreciation

15,000

 

15,000

 

Net income

$(11,000)

 

$22,500

 

Charles believes that he should earn more than $11,500 for working very hard for two years. He is thinking about going to work for an investment firm where he can earn $40,000 per year. What would you advise Charles to do?

Answers

Maurice Tutor
(5)
Status NEW Posted 04 Aug 2017 03:08 PM My Price 7.00

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