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29 Sep 2019
Mark quits his job as a company financial officer (CFO), where he was earning $50,000 per year to start his own financial consulting firm. He converts a building that he owns, which was previously rented for $12,000 per year, into an office. Also, he withdraws and uses his $100,000 savings, on which he was earning $5,000 (5 percent) interest per year, to start his business. In his first year of business, he earns $125,000 and has the following expenses: Utilities, $12,000; wages (paid to an assistant), $30,000, and materials, $20,000. Mark tells his friends that despite making profit, it is too costly for him to continue running his consulting firm. How do you justify Mark's claim (Show all your work). (10 points)
Mark quits his job as a company financial officer (CFO), where he was earning $50,000 per year to start his own financial consulting firm. He converts a building that he owns, which was previously rented for $12,000 per year, into an office. Also, he withdraws and uses his $100,000 savings, on which he was earning $5,000 (5 percent) interest per year, to start his business. In his first year of business, he earns $125,000 and has the following expenses: Utilities, $12,000; wages (paid to an assistant), $30,000, and materials, $20,000. Mark tells his friends that despite making profit, it is too costly for him to continue running his consulting firm. How do you justify Mark's claim (Show all your work). (10 points)
Kristelle BalandoLv10
29 Sep 2019
