Questions……..Explain your answers

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    queeenshana
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    • Topics: 25
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    1. Sold goods on credit $12,000. Cash sales for $500. Cash discount $70.Refund to customer $1,200. What is the revenue?

    2. Find the gearing ratio
    Ordinary share 1500,000
    Retained earnings 200,000
    Share premium 100,000
    Reserves 200,000
    non current asset
    10% loan notes 300,0000

    3. What is cashflow on investing activities?

    2007 2008
    Cash and cash equivalents 500 2000
    Bank overdraft 1500 200


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    awaj
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    • Topics: 0
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    Q1, i think the answer is the credit sales plus cash sales, ie, 12000+500 = 12500
    the cash discount and refund to customers should not be deducted from revenue. it should be treated as an expense separately.


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    queeenshana
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    • Topics: 25
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    Yeh i read the book and your answer is correct. How about question three tho???

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