The Following Data Was Taken from the Books of Peanut

question 43

Short Answer

The following data was taken from the books of Peanut Inc. as of December 31, 2020:
Cost of goods sold $ 15,300 Selling & administrative expense $3,500
Income tax expense 6,120 Accounts payable 12,000
Cash 3,500 Common shares, (3,250 shares) 20,000
Retained earnings (Jan 1) 8,000 Dividends 6,000
Other income 1,500 Interest expense 900
Sales revenue 35,000 Depreciation expense 1,500
Equipment 39,680
Instructions
a) Calculate total assets.
b) Calculate total revenue and expenses.
c) Calculate total liabilities.

---

Definitions:

Average Cost

The total cost of production divided by the number of goods produced, also known as unit cost.

Marginal Cost

The increase in total cost that arises from an extra unit of production.

Elasticity

A measure of how much the quantity demanded or supplied of a good responds to a change in price or other factors.

Long-run Profit

The amount of financial gain achieved over a longer period, taking into account all fixed and variable costs.