Use the key terms to complete the following sentence:

Borrowing money using the equity in your home as security is getting a(n) __________.

The statement of members’ equity for Bonanza, LLC, follows:

$$\begin{array}{cc} \begin{array}{c} \text{Bonanza, LLC}\\ \text{Statement of Members’ Equity}\\ \text{For the Years Ended December 31, 20Y3 and 20Y4}\\ \end{array}\\ \hline \begin{array}{lrrrr} & \begin{array}{c} \text { Idaho } \\ \text { Properties, } \\ \text { LLC, } \\ \text { Member } \\ \text { Equity } \end{array} & \begin{array}{c} \text { Streams, } \\ \text { LLC, } \\ \text { Member } \\ \text { Equity } \end{array} & \begin{array}{c} \text { Thomas } \\ \text { Dunn, } \\ \text { Member } \\ \text { Equity } \end{array} & \begin{array}{c} \text { Total } \\ \text { Members' } \\ \text { Equity } \end{array} \\ \hline \text { Members' equity, January 1, 20Y3 } & \$ 273,000 & \$ 307,000 & & \$ 580,000 \\ \text { Net income } & \underline{57,000} & \underline{133,000} & & \underline{190,000} \\ \text { Members' equity, December 31, 20Y3 } & \$ 330,000 & \$ 440,000 && \$ 770,000 \\ \text { Dunn contribution, January 1, 20Y4 } & 3,000 & 7,000 & \$ 220,000 & 230,000 \\ \text { Net income } & 62,500 & 137,500 & 50,000 & 250,000 \\ \text { Member withdrawals } & \underline{(32,000)} & \underline{(48,000)} & \underline{(40,000)} & \underline{(120,000)}\\ \text { Members' equity, December 31, 20Y4 } & \underline{\underline{\$ 363,500}} & \underline{\underline{\$ 536,500}} & \underline{\underline{\$ 230,000}} & \underline{\underline{\$ 1,130,000}} \\ \end{array} \end{array}$$

a. What was the income-sharing ratio in 20Y3?

b. What was the income-sharing ratio in 20Y4?

c. How much cash did Thomas Dunn contribute to Bonanza, LLC, for his interest?

d. Why do the member equity accounts of Idaho Properties, LLC, and Silver Streams, LLC, have positive entries for Thomas Dunn’s contribution?

e. What percentage interest of Bonanza did Thomas Dunn acquire?

f. Why are withdrawals less than net income?

Indicate whether each of the following is identified with (1) an asset, (2) a liability, or (3) stockholders’ equity: a. accounts payable

State whether each of the following is an indicator of a company’s liquidity, solvency, or profitability.

(e) Return on common stockholders’ equity.

Explain the need for closing entries and describe the process by which temporary owners' equity accounts are closed at year-end.

Which of the following is considered to be the main advantage of a market economy?

a. equity

b. sustainability

c. economic security

d. efficiency

In earlier problem, suppose the firm wishes to keep its debt-equity ratio constant. What is EFN now?

Classify the given item as an asset (A), a liability (L), or stockholders’ equity (S) for Target Corporation, a large retailer:

a. Land

Identify the feature of free enterprise (private property, choice, or competition) contained in the document listed Then describe the document's reference to the feature. Write your answers in the blanks provided. Declaration of Independence. Feature: _________. Description: ___________.

Identify the feature of free enterprise (private property, choice, or competition) contained in the document listed Then describe the document's reference to the feature. Write your answers in the blanks provided. Bill of Rights. Feature: _________. Description: ___________.

Willis is the financial officer of a private university with the responsibility for managing an endowment. If he invests $1.5 million at an interest rate of 8% compounded quarterly, how long will it be until the account exceeds$3.75 million?

Test your understanding of stockholders’ equity by answering the following questions. Select the best choice from among the possible answers given. The paid-in capital portion of stockholders’ equity does not include a. Paid-in Capital in Excess of Par Value. b. Common Stock. c. Preferred Stock. d. Retained Earnings.

As a whole, debt offerings are much more common than equity offerings and typically much larger as well. Why?

Indicate how each of these accounts should be classified in the stockholders’ equity section of the balance sheet.

(d) Treasury Stock.