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accounting/finance questions

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1) Suppose you own cupcake shop in Denton. You have annual sales of $250,000. You know from reviewing the RMA statement studies that operating expenses are 40% of annual sales. You also know that your business has general expenses of $50,000. What would you earn in profit before taxes?;$200,000;$80,000;$120,000;$100,000;2) Suppose you are given the following information. Your beginning inventory in 1/1/2013 is $100,000. You purchased an additional $50,000 during 2014. Your ending inventory on 12/31/2013 is $30,000. What is the cost of goods sold?;$20,000;$70,000;$120,000;$150,000;3) You are in the process of creating your financial statements. Suppose you buy a new piece of equipment, for which you pay a $2000 down-payment and finance the remaining $5000 on a 5-year note. What will happen to the balance sheet?;Cash and noncurrent assets will decrease. Liabilities will decrease, but owner equity will increase.;Cash will decrease, but noncurrent assets will increase. Liabilities will increase, and owner equity will increase.;Cash will increase, but noncurrent assets will decrease. Liabilities will decrease, but owner equity will increase.;Cash and noncurrent assets will decrease. Liabilities and owner equity will increase.

 

Paper#80470 | Written in 18-Jul-2015

Price : $22
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