A retail business had cash of ($15,000) and inventory of ($70,000) on hand on January 1. On
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A retail business had cash of \($15,000\) and inventory of \($70,000\) on hand on January 1. On January 7, it sold half of the inventory on credit for \($50,000\) and collected half of this amount on us January 26. The financial statements of the business would show
a. Profit of \($15,000\) and cash of $40,000
b. Profit of \($15,000\) and cash of $65,000
c. Profit of \($50,000\) and cash of $65,000
d. Loss of \($20,000\) and cash of $40,000
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Related Book For
Accounting For Managers Interpreting Accounting Information For Decision Making
ISBN: 9781118037966
1st Canadian Edition
Authors: Paul M. Collier, Sandy M. Kizan, Eckhard Schumann
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