Question

QUESTION 32 On April 21 the Patel Company borrowed $50,000 from its bank by signing a 30-day, 12% note. The loan and interest are to be paid to the bank on May Determine the total dollar amount of cash the Company must pay to the bank on May 20. a $50,164.38 b. $50,493.15 c. $52,000.00 d. $50 246.58 QUESTION 33 On July 1, the Leeann Merchandising Corporation had 9,000 keyboards in inventory. Each keyboard had cost the Corporation $12. During July, the Corporation purchased 45,000 additional keyboards at a cost of $12 each. During July the company sold 47,000 keyboards at a price of $26 each. The company's operating expenses for July were $297,000 and its expected income tax rate was 35% of income before taxes Determine the Corporation's July net income a $564,000 b. $234,650 c. $1,222,000 d. $250 250

Answer 1

Ans 32 : ( B) $ 50,493.15

Explanation:

Loan Amount	$ 50,000
Interest ( $50000× 12% × 30/ 365)	$ 493.15
Total	$ 50,493.15

Ans 33: (B) $ 234650

Explanation:

Sales ( 47000 × $ 26)	$ 1,222,000
Less: Cost of good sold ( 47000 × $ 12)	( $ 564000)
Gross Margin	$ 658000
Less: Operating Expense	( $ 297000)
Income before Tax	$ 361000
Less: Income Tax @ 35%	( $ 126350)
Net Income	$ 234650