The purchase of Equipment with cash results in Select one a

The purchase of Equipment with cash results in: Select one: a. Total Asse Increased bilities Increased b. Total Assets Decreased Total Liabilities Decreased C. Total Assets Liabilities Unchanged Unc hangec d. Total Assets Liabilities ecreased Increased e. Assets Increased Liabilities Increased

Solution

1.

The purchase of equipment with cash results in:

c.

Total                     Total

Assets                   Liabilities

Unchanged           Unchanged

2.

The payment of cash dividend previously declared will

d. Have no impact on working capital

3.

The Inventory for the balance sheet is:

Physical Inventory                            = 10,000

Less: Purchases FOB Destination    =   (200)

Add: Sales FOB Destination             =     350

Add: Goods consigned                     =     100

Total Inventory                                  = 10,250

Answer: c. $10,250