A business commenced with capital in cash of $1,000. Inventory costing $800 plus sales tax ispurchased on credit, and half is sold for $1,000 plus sales tax, the customer paying in cash at once. The sales tax rate is 20%.
What would the accounting equation after these transactions show?
Assets $
Opening cash 1,000
Cash received $(1,000 + 200 sales tax) 1,200
Closing cash 2,200 Inventory $(800 - 400) 400
2,600
Liabilities Opening liabilities Sales tax payable $(200 - 160) 40
Purchase inventory $(800 + 160 sales tax) 960
Closing liabilities 1,000 Capital Opening capital 1,000
Profit on sale of inventory $(1,000 - 400) 600
Closing capital 1,600
多做几道
Which of the following is a ratio which is used to measure how much a business owes in relation to its size?
A business operates on a gross profit margin of 331/3%. were $680. Gross profit on a sale was $800, and expenses
What is the net profit margin?
A company has the following details extracted from its statement of financial position：
$'000
Inventories 1,900
Receivables 1,000
Bank overdraft 100
Payables 1,000
The industry the company operates in has a current ratio norm of 1.8. Companies who manage liquidity well in this industry
have a current ratio lower than the norm.
Which of the following statements accurately describes the company’s liquidity position?
Why is analysis of financial statements carried out?
Which of the following transactions would result in an increase in capital employed?
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