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
non current asset
10% loan notes 300,0000
3. What is cashflow on investing activities?
Cash and cash equivalents 500 2000
Bank overdraft 1500 200
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.
Yeh i read the book and your answer is correct. How about question three tho???
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