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Question - John's Specialty Store uses a periodic inventory system. The following are some inventory transactions for the month of May:
1. John's purchased merchandise on account for $5,900. Freight charges of $750 were paid in cash.
2. John's returned some of the merchandise purchased in (1). The cost of the merchandise was $1,050 and John's account was credited by the supplier.
3. Merchandise costing $3,250 was sold for $6,100 in cash.
Required - Prepare the necessary journal entries to record these transactions.
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Assuming that total fixed expenses will be $150,000 and the sales mix remains constant, the break-even point would be closest to
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Free cash flow is calculated as
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