accounting word problems

Question 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?

Answer 1

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

Question 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?

Answer 2

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

Question 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?

Answer 3

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

Question 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?

Answer 4

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