Profit on sale of machinery comes under------------ a) Investing activity b) Financing activity c) Operating activity d) None of these

Profit on sale of machinery comes under------------ a) Investing activity
b) Financing activity
c) Operating activity
d) None of these
by

1 Answer

Answer :

c) Operating activity
by

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Baden Shoe Store has a beginning merchandise inventory of $30,000. During the period, purchases were $140,000; purchase returns, $4,000; and freight-in $10,000. A physical count of inventory at the end of the period revealed that $20,000 was still on hand. The cost of goods available for sale was a. $164,000. b. $156,000. c. $176,000. d. $184,000.

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