Question 81

The annual percentage rate of interest on terms 4/8, net 28 is 73%.

True

False

Question 82

The annual percentage rate of interest on terms 5/9, net 29 is 31%.

True

False

Question 83

The break-even point in units if fixed costs are $1200, variable costs are $96, and the selling price is $276 is 6.67.

True

False

Question 84

The contribution margin if fixed costs are $1200, variable costs are $96, and the selling price is $276 is $380.

True

False

Question 85

500 units in sales are required to earn a target profit of $45,000 if fixed costs are $1200, variable costs are $96, and selling price is $276.

True

False

Question 86

A sales price of $250 is required to earn a target profit of $45,000 if fixed costs are $1200, variable costs are $96, and sales in units are 300.

True

False

Balance Sheet 2020 Income Statement 2020 Assets Sales $ 530,000 Cash $ 280,000 Cost of Goods Sold 148,400 Accounts Receivable 117,600 Gross Profit 381,600 Inventory 89,600 Interest Income 53,000 Prepaid Expenses 14,000 Total Income $ 434,600 Total Current Assets $ 501,200 Sales Salaries 121,900 Fixed Assets 33,600 Office Salaries 26,500 Total Assets $ 534,800 Office Equipment Rental 37,100 Liabilities & Equity Interest Expense 15,900 Accounts Payable $ 90,916 General & Administrative 4,770 Notes Payable 48,132 Total Expenses $ 206,170 Accrued Expenses 42,784 Income Before Tax 228,430 Taxes Payable 37,436 Income Taxes 132,500 Deferred Taxes 48,132 Net Income $ 95,930 Total Current Liabilities $ 267,400 Long-Term Notes 123,004 Total Liabilities $ 390,404 Capital Stock 53,480 Retained Earnings 90,916 Total Equity $ 144,396 Total Liabilities & Equity $ 534,800