Chapter 21, Problem 21.27E

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general accounting question

What is the projected increase in Retained Earnings on these financial accounting question?

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Accounting answer

Everett Corporation started the year with long-term debt of $85,000, which represents the principal balance of a loan payable to Sunrise Bank. During the year, the company made total payments of $20,400, which included $6,400 in interest. Additionally, the company took out a new loan of $14,000. Determine the value of ending long-term debt.

A company has variable costs of 75% of sales, current sales of $800,000, and fixed costs of $150,000. What is the amount of sales required to achieve a net income of $70,000?