What Would Be the Amount of Cash Appearing on Whine's

question 8

Multiple Choice

What would be the amount of cash appearing on Whine's December 31, 2018 consolidated balance sheet (after the issue of shares to Chompster) ?

• A) $450,000.
• B) $610,000.
• C) $850,000.
• D)$810,000.

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Definitions:

Interest Expense

The cost incurred by an entity for borrowed funds, often reported on the income statement.

Fixed Operating Costs

Fixed operating costs refer to expenses that do not change in proportion to business activity levels, such as rent, salaries, and insurance premiums.

Earnings Before Interest And Taxes

A measure of a company's profitability that includes income before the deduction of interest payments and taxes.

Sales Revenue

The income received by a company from its sales of goods or the provision of services, before any expenses are deducted.