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Question 1 1. You operate a small clothing boutique in a quaint downtown market. Your beginning inventory last month was $25,000 and you made another $10,000 in inventory purchases during the month and ended up with $18,000 of inventory left. What was your cost of goods sold?
Question 2 2. What's the difference between a credit line and a promissory note?
Question 3 3. Which of the following items would be considered indirect expenses in the course of business operations?
Question 4 4. In which account is equity that comes from the sale of stocks or bonds categorized?
Vandox Company Ltd is a company looking to secure a loan with a commercial bank.
The following details are available:
1. Interest expense = $58,000
2. Earnings = $215,000
3. Total liabilities = $143,000
4. Total assets = $450,000
5. Total equity = $29,000