Asked by Nadia Patel on Jun 25, 2024
Verified
Determine the ending Capital amount of a business having:
Beginning Capital amount of $25,000
Withdrawals of $ 2,500
Net sales of $250,000
Net purchases of $85,000
Freight-in of $2,000
Beginning inventory of $6,000
Ending inventory of $7,000
Operating expenses of $ 30,000
$ ________
Net Purchases
Net Purchases refers to the total amount of purchases made by a company after subtracting any returns, allowances, and discounts received.
Ending Inventory
is the total value of goods available for sale at the end of an accounting period after accounting for all additions and subtractions during the period.
Operating Expenses
Expenses incurred during the normal functioning of a business, excluding the cost of goods sold; these can include salaries, rent, utilities, and marketing expenses.
- Calculate ending capital based on given financial information.
Verified Answer
HB
Learning Objectives
- Calculate ending capital based on given financial information.