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wariber [46]
3 years ago
12

Suppose Ningbo Steel had sales revenue of $11,000 sales revenue, cost of goods sold of $5,000, operating expenses of $3000, inte

rest expense of $1,000, a tax rate of 20%, and 1,000 shares of common stock outstanding. Based on this information, net profit after tax was:_________.
A. $1,600
B. $500
C. $1,000
D. $0
Business
1 answer:
Anon25 [30]3 years ago
6 0

Answer:

A. $1,600

Explanation:

                               Ningbo Steel

                           Income Statement

Sales Revenue                                   $11,000

Less Cost of goods sold                    <u>$5,000 </u>

Gross Profit                                         $6,000

Less Operating Expense                    <u>$3,000 </u>

Earning Before Interest and Taxes    $3,000  

Less Interest Expense                         <u>$1,000</u>

Earning before Tax                              $2,000  

Less Tax Expenses (2,000 *20%)       <u>$400</u>

Net Profit after tax                              <u>$1,600</u>

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In 3-4 sentences describe how economic liberty helps water the "money tree" in a free enterprise.
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Answer:

It helps giving you the ability to choose what you think is best for your business

Explanation:

Vic, using the money tree metaphor is awesome in order to explain. Think about your free enterprise (let’s say… a store that sells trees!).

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Imagine that in your region you can only sell trees with red leaves, or your trees are taxed much more than trees coming from overseas, or that employment law requires that no employee gets near a plant (who knows, it could be to prevent allergic season!). That would make super hard to develop your business right?

That’s how economic liberty could help you grow your money tree; into giving you the ability to choose what you think is best for your business.

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4 years ago
Terapin Company engages in the following external transactions for November. 1. Purchase equipment in exchange for cash of $23,4
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Answer:

Journal Entries

Journal 1 :

Equipment $23,400 (debit)

Cash $23,400 (credit)

Being Purchase of Equipment

Journal 2 :

Cash  $6,800 (debit)

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Cash $2,100 (credit)

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Narrations have been provided to explain the transaction. Remember to use the account titles provided in accounting for the transactions.

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The April ledger accounts for cash showed  is :

JEFFERSON COMPANY

Bank Reconciliation, April 30, Current Year

Company's Books Bank Statement

Ending balance per cash account   26100 Ending balance per bank statement   23690

Additions:     Additions:    

Interest collected 1320   Deposits in transit 7200  

         

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   27420     30890

Deductions:     Deductions:    

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Bank charges 60        

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