A Retailer Buys 200 Tables at $550 Each (Including GST

question 3

Multiple Choice

A retailer buys 200 tables at $550 each (including GST of $50) and sells all of them for $880 each (including GST of $80) . How much needs to be remitted to the tax department?

• A) $6 000
• B) $10 000
• C) $16 000
• D) None of the above

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Definitions:

Net Working Capital

The difference between a company's current assets (like cash, inventory, receivables) and its current liabilities (like payables), indicating short-term financial health and operational efficiency.

Cash Flow From Assets

The total amount of money being transferred in and out of a business, particularly from operational, investing, and financing activities.

Shareholders' Equity

The ownership interest of shareholders in a company's assets, once all liabilities have been subtracted.

Net Working Capital

Net working capital is the difference between a company's current assets and current liabilities, indicating the short-term financial health and operational efficiency of the company.