To start Customized Websites, Kevin Crawford and Crystal Alesio each contributed $10,000 of their own money and borrowed $50,000 from the bank to pay for computers and the necessary peripherals. Computers cost them $5,000, while printers, scanners, and software cost them $27,500. Office furniture cost them an additional $7,500, which they have not yet paid. They are left with $37,500 in cash. Prepare a balance sheet for Customized Websites.

bank credit

Explanation:

A bank credit is money that is collected from a bank or financial institution that is determined by the ability of the person to repay the loan and the total money the bank has available to pay.

The bank calculates the ability of the person to pay back a certain percentage of the loan over a particular period before disbursement.

In the given scenario Parker's expansion will cost approximately $150,000 in construction costs. Purchasing the additional inventory will cost $50,000. Over the next two years Parker believes this will increase sales 20% and profitability 25%.

The bank will verify the efficacy of these projections and give the loan to Parker