During July 2020, Sunny's Supply Store Generated Net Sales of $65,000

question 131

Multiple Choice

During July 2020, Sunny's Supply Store generated net sales of $65,000. The company's expenses were as follows: cost of goods sold of $43,000 and operating expenses of $8,000. The company also had rent revenue of $3,000 and a loss on disposal f plant assets of $4,000. Sunny's nonoperating income (loss) for the month of July 2020 is

• A) $0.
• B) $(3,000).
• C) $2,000.
• D) $(1,000).

Understand the sources and reliability of data used by credit bureaus.

Recognize the legal protections for consumers in the credit industry.

Identify the factors affecting the debt-to-equity ratio and its implications.

Understand the role and functioning of the Consumer Financial Protection Bureau.

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Definitions:

Discounted Payback

A capital budgeting method that calculates the time required to break even from an investment based on its discounted cash flows rather than just the nominal cash flows.

Liquid Investments

Assets that can be quickly and easily converted into cash without significant loss in value, like stocks and bonds.

Payback

The period of time it takes for an investment to generate an amount of income or cash equal to the cost of the investment.

Discounted Payback

A capital budgeting method that calculates the time needed to recoup the initial investment in present value terms.