Lanni Products is a start-up computer software development firm. It currently owns computer equipment worth $30,000 and has cash on hand of $20,000 contributed by Lanni's owners. • Lanni takes out a bank loan. It receives $50,000 in cash and signs a note promising to pay back the loan over three years.
• Lanni uses the cash from the bank plus $20,000 of its own funds to finance the development of new financial planning software.
• Lanni sells the software product to Microsoft, which will market it to the public under the Microsoft name. Lanni accepts payment in the form of 2,000 shares of Microsoft stock.
• Lanni sells the shares of stock for $70 per share and uses part of the proceeds to pay off the bank loan.
A-1. Prepare its balance sheet just after it gets the bank loan.
A-2. What is the ratio of real assets to total assets?
B-1. Prepare the balance sheet after Lanni spends the $70,000 to develop its software product.
B-2. What is the ratio of real assets to total assets?C-1. Prepare the balance sheet after Lanni accepts the payment of shares from Microsoft.
C-2. What is the ratio of real assets to total assets?