Answered: In a period, sales are $140,000,…

In a period, sales are $140,000, purchases $75,000 and other expenses $25,000. What is the figure for net profit to be transferred to the capital account? A $40,000 B $65,000 C $75,000 D $140,000

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter14: Statement Of Cash Flows

Section: Chapter Questions

Problem 21BEA: Swasey Company earned net income of 1,800,000 in 20X2. Swasey provided the following information:...

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Question

In a period, sales are $140,000, purchases $75,000 and other expenses $25,000. What is the figure for net
profit to be transferred to the capital account?
A $40,000
B $65,000
C $75,000
D $140,000

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