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Corporate Finance Assignment/ Professional Essay Writers

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April 21st, 2020

A retail business has cash sales of £100,000, the cost of sales for which was £35,000. Salaries of £15,000, rental of £4,000 and advertising of £8,000 have been paid in cash. The owners have contributed equity of £25,000. In addition, the business paid cash of £40,000 for stock and purchased equipment on credit for £20,000. The financial statements of the business would show:

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a. Profit of £38,000 cash of £13,000 and equity of £25,000.

b. Profit of £38,000 cash of £58,000 and equity of £63,000.

c. Profit of £65,000 cash of £33,000 and equity of £38,000.

d. Profit of £63,000 cash of £33,000 and equity of £25,000.  Get Finance Help Today

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