Refer to Scenario 9

question 266

Multiple Choice

Refer to Scenario 9.6 below to answer the question(s) that follow.
SCENARIO 9.6: Celeste borrowed $40,000 from her brother to open a car wash. She pays her brother a 5% yearly return on the money he lent her. Her other yearly fixed costs equal $18,000. Her variable costs equal $40,000. In her first year, Amy sold 40,000 car washes at a price of $2.50 per car wash.
-Refer to Scenario 9.6. Celeste's profit is

Definitions:

Cash Account

An account that shows the amount of cash a company has on hand or in the bank.

Cash Dividends

Profit distributions paid out by a corporation to its shareholders.

Net Income

The company's overall earnings following the subtraction of all costs, taxes, and expenses from the total income.

Investing Activities

Transactions related to the acquisition or disposal of long-term assets and investments, usually reflected in the investing section of the cash flow statement.