Generally, a small-business owner follows four steps to develop the pro forma income statement:
Establish a sales projection
Set up a production schedule
Calculate your other expenses
Determine your expected profit
After using your sales projection as a starting point, you calculate the cost of goods sold if you are selling a physical product.
I would also suggest looking at trade organizations and asking other small business owners to help forecast costs.
Answer:
&175
Explanation:
Breakeven price is the minimum price a product or service must be sold to cover the cost of producing it. Its aim is to ensure that items are not sold at a loss.
In the scenario given ,
Cost of room reservation = $3000
Cost of room / student = $3000/20 = $150
Course materials per student = $25
Total cost of course materials = $25 * 20 =$500
Total cost of training = $3,500
Target attendees = 20
Breakeven price = $3500/20 = $175
Answer:
The credit portion of a general journal entry is always recorded first.
Explanation:
A journal entry involves the process of keeping the records of business transactions made by an organization.
The journal entry is used by bookkeepers and accountants. Ideally, it is important that a journal has all of following informations; date, reference number, debit balance, credit balance and transaction description.
Also, the total amount of money credited must equal the total amount of money debited.
The following statements are correct and true about the general journal;
I. The description of a journal entry should include a reference to the source of the information contained in the entry.
II. If goods are purchased on credit, the supplier's invoice number is used as the source document for the transaction.
III. A firm should be able to trace amounts through the accounting records and back to their source documents.
It gives you a map so that you can find where u are going
