The Constantine Company had the following assets and liabilities on the dates indicated.

December 31 Total Assets Total Liabilities
2015 $480,000 $250,000
2016 $460,000 $220,000
2017 $590,000 $300,000

Constantine began business on January 1, 2015, with an investment of $100,000.

Instructions

From an analysis of the change in owner’s equity during the year, compute the net income (or

loss) for:

(a) 2015, assuming Constantine’s drawings were $45,000 for the year.

(b) 2016, assuming Constantine made an additional investment of $50,000 and had no drawings in 2016.

(c) 2017, assuming Constantine made an additional investment of $15,000 and had drawings of $40,000 in 2017.

Kelso electric is debating between a leveraged and an unleveraged capital structure. the all equity capital structure would consist of 40,000 shares of stock. the debt and equity option would consist of 25,000 shares of stock plus $280,000 of debt with an interest rate of 7 percent. what is the break-even level of earnings before interest and taxes between these two options?

Total marketing effort is a term used to describe the critical decision factors that affect demand: price, advertising, distribution, and product quality. define the variable x to represent total marketing effort. a typical model that is used to predict demand as a function of total marketing effort is based on the power function: d = axb suppose that a is a positive number. different model forms result from varying the constant b. sketch the graphs of this model for b = 0, b = 1, 0< b< 1, b< 0, and b> 1. (we encourage you to use excel to do this.) what does each model tell you about the relationship between demand and marketing effort? what assumptions are implied? are they reasonable? how would you go about selecting the appropriate model?

Ll companies has sales of $9,800, net income of $1,060, total assets of $8,950, and total debt of $4,760. assets and costs are proportional to sales. debt and equity are not. a dividend of $371 was paid, and the company wishes to maintain a constant payout ratio. next year's sales are projected to be $10,584. what is the amount of the external financing need?