Answer and Explanation:
The Journal entry is shown below:-
1. Sales revenue Dr, $28,656 ($121,700 + $287,673) × 7%
To Sales tax payable $28,656
(Being sales tax payable is recorded)
Here we debited the sales revenue as it decreased the revenue while we credited the sales tax payable as it increased the liabilities so that the proper posting could be done
Working note
Credit sales = $130,219 × 100 ÷ 107
= $121,700
Cash sales = $302,810 × 100 ÷ 107
= $287,673
Answer:
$5,000
Explanation:
Given that,
Accounting profit = $10,000
Interest rate = 5%
Amount withdraw = $100,000
The economic profit is calculated by subtracting implicit costs and explicit costs from the total revenue.
Accounting profit is determined by subtracting explicit costs from the total revenue.
Accounting profit = Total revenue - Explicit costs
Economic profit:
= (Total revenue - Explicit costs) - Implicit costs
= $10,000 - (Interest income)
= $10,000 - (5% × $100,000)
= $10,000 - $5,000
= $5,000
Answer:
Ratio analysis
Explanation:
Financial statements are used to show the assets, liabilities, revenues, expenses, and owners equity of a business entity within a given time frame.
Income statement is revenue less expense within a given period. While the balance sheet shows the financial position of a business at a particular point, that is its assets, liabilities, and owner equity.
Information form financial statements are analysed by the use of ratio analysis to gain a better understanding of financial condition of an organisation.
Ratio analysis compares the magnitude of line items within financial statements to determine liquidity, profitability, solvency and operational efficiency of a business.
For example current ratio shows how well a business can use its current assets to settle its current liability, this is a liquidity ratio.
Answer:
Think of the price of materials then of your time
Explanation:
Answer:
True
Explanation:
Capitalism works because it encourages competition
