The Following Is a Partial Balance Sheet and Additional Information

question 71

Essay

The following is a partial balance sheet and additional information for the Lakehurst Company:

Additional information:
(a)Net income for 2014 was $30,000
(b)Depreciation Expense for 2014 was $60,000
(c)Sales for 2014 totaled $980,000
(d)Cost of Goods Sold for 2014 was $700,000
Required:
Compute the total Cash paid in 2014 for Inventory purchases.

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Definitions:

Economic Profits

Profits that exceed the opportunity costs of all inputs, reflecting earnings beyond the next best alternative.

Economic Profits

The discrepancy between overall income and all expenses, encompassing both direct and hidden costs.

Resource Allocation

The process of distributing available resources among various competing needs or projects in order to maximize overall efficiency or achieve a desired outcome.

Economic Profits

The distinction in a company's finances that results from deducting both tangible and intangible costs from the total revenue.