S&J Plumbing, Inc.’s 2010 income statement shows a net profit before tax of $468, whereas the balance sheet

| September 28, 2018

Part1 (1page with the references)

When
analyzing statements, what external factors that affect business must be
considered?

Write
a 1-page paper including references about the similarities between a firm’s
capital budgeting decisions and individual investment decisions.
Part2(1page
with references)
S&J Plumbing, Inc.’s 2010
income statement shows a net profit before tax of $468, whereas the balance
sheet that the company’s equity for the fiscal year-end 2010 is $1,746.

Calculate
the company’s return on equity and whether the managers are providing a
good return on the capital provided by the company’s shareholders.
Diagram the
operating cycle of a service company.

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