The Net Proceeds to the Vendor of a House After

question 217

Multiple Choice

The net proceeds to the vendor of a house after payment of 4.8% real estate commission was $182,784.00. At what price did the house sell?

• A) $192,000.00
• B) $877,363.20
• C) $191,557.63
• D) $8773.63
• E) $201,216.00

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Definitions:

Compensating Balance

A minimum account balance that a borrower is required to maintain as a condition of borrowing from a lender, often used to offset the cost of maintaining the loan.

Accounts Payable Period

The average time it takes for a company to pay off its suppliers.

Credit Sales

Transactions in which goods or services are provided to a customer with the agreement that payment will be made at a later date.

COGS

Stands for Cost of Goods Sold, which represents the direct costs attributable to the production of the goods sold by a company, including materials and labor.