The assets as given above are as follows:
Acquired
$37,000 cash from the issue of common stock.
Borrowed $33,000 cash from National Bank less paid $8,000 cash to reduce the principal balance of the bank note which gives a balance of $25,000.
Earned cash revenues of $55,000 for performing
services less paid cash expenses of $48,500 less paid a $1,700 cash dividend to
the stockholders.
This gives a total earned revenue of $4,800.
Acquired an additional $27,000 cash from the issue of
common stock.
The market
value of the land is $84,000 less paid $60,000 cash to purchase land = $24,000.
Total asset = $37,000 + $25,000 + $4,800 + $27,000 + $24,000 = $117,800
Total asset provided by investors, creditors, and earnings = $37,000 + $25,000 + $4,800 + $27,000 = 93,800
Percentage of assets that were provided by investors, creditors, and earnings = 93,800 / 117,800 x 100% = 79.6%
