The following accounts balances are provided for Chen Pty Ltd at 31 December 2019. Revenues...
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Accounting
The following accounts balances are provided for Chen Pty Ltd at 31 December 2019. Revenues and expense accounts cover the financial year ending on that date.
| Accounts payable | 14,000 | Prepaid insurance | 2,500 |
| Accounts receivable | 18,000 | Property, plant and equipment | 150,000 |
| Accumulated depreciation | 30,000 | Retained earnings | 78,000 |
| Cash | 6,000 | Sales revenues | 122,000 |
| Cost of sales | 35,000 | Selling and admin expenses | 65,000 |
| Interest expense | 4,000 | Share capital | 50,000 |
| Interest payable | 500 | Supplies | 3,000 |
| Inventory | 34,000 | Unearned revenue | 2,000 |
| Loan payablelong term | 40,000 | Wages expense | 6,000 |
| Patents and trademarks | 4,000 | Wages payable | 3,000 |
What is the Net Profit?
| a. | $87,000 | |
| b. | $12,000 | |
| c. | $124,000 | |
| d. | Unable to be calculated from the information given | |
| e. | $89,000 |
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