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3. Investors buy shares in Quietus Ltd. for $5 million. On Day One of the company's operations, $3 million is spent on assets and $4
3. Investors buy shares in Quietus Ltd. for $5 million. On Day One of the company's operations, $3 million is spent on assets and $4 million is borrowed from the Bank. By the end of the rst month they have also bought $10 million of goods for resale on credit and made sales of $25 million on credit. The remaining inventory had a cost of $3 million. Ignore all other transactions and expenses. The operating profit for the month was a) $25 million b) $20 million c) $18 million (1) $15 million e) None of the above
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