Answer:
D
Explanation:
Net working assets is current assets less current liabilities
Current assets include cash, cash equivalents and inventory
Examples of current liabilities include accounts payables, short-term debt, accrued expenses, and dividends payable
When inventory is purchased with cash, inventory increases and cash reduces, thus there is no change in net working capital
Net working capital can be negative or positive.
If current assets is greater than current liabilities, it would be positive, if this is not the case, it would be negative.
Answer:
Explanation:
Journal entry is a record of transaction in their respective accounts using the debit and credit system. Debit entry represents an increase and credit a decrease.
S / NO Particulars Debit Credit
1 Cash 200,000
Share stock 200,000
2 Inventory 483,000
Account payable 483,000
3. Account receivable 675,000
Sales 675,000
Cost of goods 405,000
Inventory 405,000
4 Cash 562,000
Account receivable 562,000
5 Account payable 431,000
Cash 431,000
6 Motor Vehicle 39,000
Cash 39,000
7 Rent 25200
Prepaid rent 2100
Cash 27300
8 Operating Expenses 20,000
Cash 18,000
Operating exp payable 2,000
9 Depreciation 2,000
Motor Vehicle 2,000
10 Dividends payable 8500
Cash 8500
Answer:
Pretty sure its a I am not sure however
Explanation:
Answer:
The break-even point in sales dollars is: C. $32,000
Explanation:
During the current year 11,000 hams were sold resulting in $220,000 of sales revenue, $55,000 of variable costs, and $24,000 of fixed cost.
Contribution margin ratio = (Sales - Total Variable cost)/Sales = ($220,000 - $55,000)/$220,000 = 0.75
The break-even point sales dollars is calculated by using following formula:
Break-even point in sales dollars = Fixed cost/Contribution margin ratio = $24,000/0.75 = $32,000
