The Following Accounts Are on the Balance Sheet Section of Scents

question 81

Essay

The following accounts are on the Balance Sheet section of Scents Galore worksheet for the period ending November 30, 2020.
Required: Prepare a classified Balance Sheet for the company as of Nov. 30, 2020.
Additional information: Withdrawals for the period are $4, and Net Income is $12.
$$\begin{array} { | l | c | c | } \hline \text { Account } & \text { Balance Sheet Debit } & \text { Balance Sheet Credit } \\\hline \text { Fash } & 6 & \\\hline \text { Accounts Receivable } & 10 & \\\hline \text { Merchandise Inventory } & 14 & \\\hline \text { Stcre Equipment } & 30 & \\\hline \text { Accumulated Depreciation - Store Equipment } & & 6 \\\hline \text { Accounts Payable } & & 14 \\\hline \text { Mortgage Payable } & & 24 \\\hline \text { Scents Calore, Capital } & & 8 \\\hline\end{array}$$

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Definitions:

Current Liabilities

Financial obligations a company owes and is due within a year.

Dividend Payout Ratio

The proportion of a company's earnings paid out to shareholders as dividends, often expressed as a percentage of net income.

Sales Increase

The growth in revenue or number of units sold over a specific period, often used as a measure of business performance.

Full Capacity

The maximum level of output that a company can sustain to make a product or provide a service under normal circumstances.