Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Answer the following questions: Does the firm need to borrow money at the end of the year to meet expenses? Why or why not? Scenario

Answer the following questions: Does the firm need to borrow money at the end of the year to meet expenses? Why or why not?
image text in transcribed
Scenario (A) 1 Solution: Computation of the following 3 Gross Sales 4 Inventory Purch (cost of Goods Sold) 5 Net Sales 6 Cash Disbursement to owner 7 Wages & Salaries 8 Rental Exp 9 Utilities 10 Tax Prepayment 11 Interest on Bank Note October November December 280000 290000 345000 70000 75000 95000 210000 215000 250000 45000 51000 52000 134400 139200 165600 9500 9500 9500 14000 14500 17250 16000 1500 1500 1500 13 Profit -10400 -700 4 150 Formulae: 1 Solution: Computation of the following 3 Gross Sales 4 Inventory Purch cost of Goods Sold) 5 Net Sales 6 Cash Disbursement to owner 7 Wages & Salaries 8 Rental Exp 9 Utilities 10 Tax Prepayment 11 Interest on Bank Note October 280000 20000 -83-84 45000 B30.48 9500 +B30.05 16000 1500 November 290000 75000 -C3-C4 51000 +3*0.48 9500 +30.05 December 345000 95000 -D3-D4 52000 +03'0.48 9500 +030.05 1500 1500 12 13 Profit =BS-SUM[16:311) -CS-SUM(C6:011) -DS-SUM(D6:011) Scenario (B) B C D 1 Solution: Computation of the following 3 Gross Sales 4 Inventory Purch (cost of Goods Sold) 5 Net Sales 6 Cash Disbursement to owner 7 Wages & Salaries 8 Rental Exp 9 Utilities 10 Tax Prepayment 11 Interest on Bank Note October November December 275000 310000325000 60000 75000 85000 215000 235000 240000 30000 35000 40000 137500 155000 162500 10000 10000 10000 27500 31000 32500 12000 2500 2500 2500 13 Profit -4500 1500 -7500 Scenario (A) 1 Solution: Computation of the following 3 Gross Sales 4 Inventory Purch (cost of Goods Sold) 5 Net Sales 6 Cash Disbursement to owner 7 Wages & Salaries 8 Rental Exp 9 Utilities 10 Tax Prepayment 11 Interest on Bank Note October November December 280000 290000 345000 70000 75000 95000 210000 215000 250000 45000 51000 52000 134400 139200 165600 9500 9500 9500 14000 14500 17250 16000 1500 1500 1500 13 Profit -10400 -700 4 150 Formulae: 1 Solution: Computation of the following 3 Gross Sales 4 Inventory Purch cost of Goods Sold) 5 Net Sales 6 Cash Disbursement to owner 7 Wages & Salaries 8 Rental Exp 9 Utilities 10 Tax Prepayment 11 Interest on Bank Note October 280000 20000 -83-84 45000 B30.48 9500 +B30.05 16000 1500 November 290000 75000 -C3-C4 51000 +3*0.48 9500 +30.05 December 345000 95000 -D3-D4 52000 +03'0.48 9500 +030.05 1500 1500 12 13 Profit =BS-SUM[16:311) -CS-SUM(C6:011) -DS-SUM(D6:011) Scenario (B) B C D 1 Solution: Computation of the following 3 Gross Sales 4 Inventory Purch (cost of Goods Sold) 5 Net Sales 6 Cash Disbursement to owner 7 Wages & Salaries 8 Rental Exp 9 Utilities 10 Tax Prepayment 11 Interest on Bank Note October November December 275000 310000325000 60000 75000 85000 215000 235000 240000 30000 35000 40000 137500 155000 162500 10000 10000 10000 27500 31000 32500 12000 2500 2500 2500 13 Profit -4500 1500 -7500

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Auditing With The Computer

Authors: Wayne S. Boutell

1st Edition

0520363329, 978-0520363328

More Books

Students also viewed these Accounting questions

Question

Write a program to check an input year is leap or not.

Answered: 1 week ago

Question

Write short notes on departmentation.

Answered: 1 week ago

Question

What are the factors affecting organisation structure?

Answered: 1 week ago

Question

What are the features of Management?

Answered: 1 week ago

Question

Briefly explain the advantages of 'Management by Objectives'

Answered: 1 week ago