Cash 25,450Accounts Receivable 25,500Inventory 85,000Prepaid Expenses 4,950Motor vehicle 68,000Equipment 155,000Accounts Payable 35,000Unearned Revenue 8,000Wages Payable 15,000Bank Loan 50,000Share Capital 235,000Retained Earnings 10,000Dividends -5,000Revenue 53,650Cost of Sales -12,450Wages Expense -15,000Interest expense -2,500Marketing expense -2,800Insurance expense -5,000Calculate NET PROFIT
Question
Cash 25,450Accounts Receivable 25,500Inventory 85,000Prepaid Expenses 4,950Motor vehicle 68,000Equipment 155,000Accounts Payable 35,000Unearned Revenue 8,000Wages Payable 15,000Bank Loan 50,000Share Capital 235,000Retained Earnings 10,000Dividends -5,000Revenue 53,650Cost of Sales -12,450Wages Expense -15,000Interest expense -2,500Marketing expense -2,800Insurance expense -5,000Calculate NET PROFIT
Solution
To calculate the Net Profit, we need to subtract the total expenses from the total revenue.
First, let's calculate the total revenue: Revenue = 53,650
Next, let's calculate the total expenses: Cost of Sales = 12,450 Wages Expense = 15,000 Interest Expense = 2,500 Marketing Expense = 2,800 Insurance Expense = 5,000
Total Expenses = Cost of Sales + Wages Expense + Interest Expense + Marketing Expense + Insurance Expense Total Expenses = 12,450 + 15,000 + 2,500 + 2,800 + 5,000 = 37,750
Finally, we subtract the total expenses from the total revenue to get the Net Profit: Net Profit = Total Revenue - Total Expenses Net Profit = 53,650 - 37,750 = 15,900
So, the Net Profit is 15,900.
Similar Questions
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