$0\mathrm{.}5$ Points

Question $11$

Alex started a landscaping$/$lawn mowing business over the summer. Alex invested $$400$ in the business and named it "Alex's Lawncare Service." The business borrowed $$1,200$ in order get things off and running. Repayments on the loan aren't required during the first year because it was a family member making the loan.

The business purchased a push mower for $$150,$ a weed eater for $$75,$ and a small riding mower for $$950.$ Alex secured a number of jobs in his subdivision and has started expanding to adjoining neighborhoods. The business earned $$8,350$ during the first summer. The lawncare service spent cashion the following items: $$800$ in gas; $$500$ in grass seed; $$400$ in chemicals and fertilizer. At the end of the summer, all of those items were either completely used up or discarded. It also paid $$150$ for repairs on the equipment, $$70$ for an insurance policy that was in effect for the summer months and $$50$ on advertising. Alex withdrew $$3,000$ to live on$.$

At the end of the season, the business checking account contained $$3,805.$

What amount of EQUITY was contributed at the start of the business?

Blank $1$

Blank $1$

Add your answer