The financial statement for the beginning of the year showed a surplus of $35,703.
From your analysis of the disbursements and unpaid accounts at the beginning and end of the year, you find total purchases amounting to $661,910, and expenses for salaries, wages, supplies, repairs, etc., amounting to $120,115.
The purchases, however, included $450 paid out for John Smith, an employee, for which he has not reimbursed the company; and the total expense of $120,115 included $250 in the hands of a buyer as a working fund.
The inventory of merchandise at the beginning of the year was $18,125 and of prepaid expense was $2,653.
There was canceled on the customers ledger during the year $3,206 of uncollectible accounts.
There was paid for interest and discount on notes payable $1,061, and for interest on mortgage $1,500.
A 10% dividend was declared but not paid.
From the foregoing prepare: (a) a balance sheet as at December 31, 19—; (b) a profit and loss statement exhibiting net sales, cost of sales, and gross and net profit for the year.
Interest, Discount, and Proportion
39. What single rate of discount is equivalent to the series 20%, 20%, and 15%? 50%, 25%, and 15%?