Item10

2points

Time Remaining 1 hour 16 minutes 26 seconds

01:16:26

Item 10

Time Remaining 1 hour 16 minutes 26 seconds

01:16:26

Alpaca Corporation had revenues of $210,000 in its first year of operations. The company has not collected on $18,300 of its sales and still owes $27,000 on $95,000 of merchandise it purchased. The company had no inventory on hand at the end of the year. The company paid $15,000 in salaries. Owners invested $26,000 in the business and $26,000 was borrowed on a five-year note. The company paid $2,900 in interest that was the amount owed for the year, and paid $6,700 for a two-year insurance policy on the first day of business. Alpaca has an effective income tax rate of 40%. Compute net income for the first year for Alpaca Corporation.

Multiple Choice

• $115,000

• $56,250

• $93,750

• $69,240

Tri Fecta, a partnership, had revenues of $377,000 in its first year of operations. The partnership has not collected on $46,500 of its sales and still owes $38,100 on $150,000 of merchandise it purchased. There was no inventory on hand at the end of the year. The partnership paid $27,900 in salaries. The partners invested $48,000 in the business and $26,000 was borrowed on a five-year note. The partnership paid $2,340 in interest that was the amount owed for the year and paid $8,100 for a two-year insurance policy on the first day of business. Ignore income taxes. Compute the cash balance at the end of the first year for Tri Fecta.

Multiple Choice

• $262,660

• $254,260

• $266,710

• $246,590

The following information ($ in millions) comes from a recent annual report of Amazon.com, Inc.:

Net sales	$	10,895
Total assets		4,393
End of year balance in cash		1,186
Total stockholders' equity		504
Gross profit (Sales Cost of Sales)		2,460
Net increase in cash for the year		17
Operating expenses		2,048
Net operating cash flow		729
Other income (expense), net		(20	)

Compute Amazon's cost of goods sold for the year.

Multiple Choice

• $7,170

• $8,847

• $5,122

• $8,435