Your detailed expenses cost of sales and if the business made a profit or loss.
Answer:
Option (B) is correct
Explanation:
Depreciation expense:
= (cost - salvage value) ÷ estimated useful life
= ($144,000 - $4,000) ÷ 4
= $35,000
Average investment:
= (cost + salvage value) ÷ 2
= ($144,000 + $4,000) ÷ 2
= $74,000
Net income:
= Annual net cash flows - Depreciation expense
= $46,100 - $35,000
= $11,100
Accounting rate of return:
= (Net Income ÷ Average investment) × 100
= ($11,100 ÷ $74,000) × 100
= 15%
What is your question asking?
Answer:
(a)
1. Kalispell State Bank
2. Glacier Boutique
3. Big Sky Sports
4. Kalispell State Bank
5. Big Sky Sports
6. Big Sky Sports
7. None of the above
8. Glacier Boutique
9. None of the above
10. Big Sky Sports
(b) Business transactions refers to the transactions that are related to only business, such as purchase of land, machinery, goods for business purposes. Any type of personal transaction is not included in business transaction.
