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Flashcards in accounting word problems Deck (4)
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1

Penn State University sells most of their assets during football games.  They sell $850 worth of sweathshirts, $1142 worth of blankets, and $999 worth of jerseys.  They pay rent which is a fixed expense of $850, utilities which are a variable expense of $359 and supplies expense which is a variable of $2500.  Did they make a profit or loss?

  • revenue: $2991
  • exenses: $3709
  • loss: $718

2

Starbucks sells coffee and tea at the local shop.  On Mondays they sell $700, Tuesdays they sell $857, Wednesday they sell $998 and Thursdays they sell $475.  They have expenses of $854 for coffee supplies which is a variable, $1500 for rent which is a fixed expense, and $540 for cups which is a variable expense.  Did they make a profit or loss?

  • revenue: $3030
  • expense:  $2894
  • profit:  $136

3

Toys R Us sold all of its assets on black friday.   They sold 457 barbie dolls $19.99 each, 884 hot wheel cars at $1.99 each, 441 video games at $29.99 each and $8874 worth of Frozen merchandise.  They paid their mortage payment of $11524, a maintenance bill for the heater which is a periodic expense of $1500, real estate taxes of $7451 and telephone bill of $150.  Did they make a profit or loss?

  • revenue:  9135.43 + 1759.16 + 13225.59 + 8874 = 32994.18
  • expenses: 20625.00
  • profit:  $12369.18

4

Chik fil et had cash outflow of $874, $21, $552, and $125.  They had cash inflow of $129, $367, $11, and $99.  Did they bring in or spend more?

  • inflow: $606
  • outflow: 1572
  • spent more/ loss:  -966