Interactions with other organizations outside the alliance have no impact on partner trust

Worton Distributing expects its September sales to be 25% higher than its August sales of $150,000. Purchases were $100,000 in August and are expected to be $120,000 in September. All sales are on credit and are expected to be collected as follows: 30% in the month of the sale and 70% in the following month. Purchases are paid 25% in the month of purchase and 75% in the following month. The cash balance on September 1 is $10,000. The ending cash balance on September 30 is estimated to be:

What will be an ideal response?

Operating losses incurred during the start-up years of a new business should be

a. accounted for and reported like the operating losses of any other business. b. written off directly against retained earnings. c. capitalized as a deferred charge and amortized over five years. d. capitalized as an intangible asset and amortized over a period not to exceed 20 years.