23) You have agreed to pay $395.87 for a new chaise lounge. The price includes sales tax at a rate of 4.25%. What was the marked price of the chaise lounge and how much tax was paid?

A) $277.80; $118.07

B) $383.41; $12.46

C) $376.12; $19.75

D) $379.73; $16.14

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CAN YOU EXPLAIN HOW YOU GOT THAT ANSWER PLEASE

Let X = marked price

Then,

X + 4.25% of X = $395.87

Therefore,

X + (0.0425)X = 395.87

(1.0425)X = 395.87

X = 395.87 / 1.0425 = $379.73

4.25% of 379.73 = $16.14

25) A vertical analysis of an income statement shows the ratio of each item on the income statement to the:

A) owner's equity

B) net sales

C) total sales

D) total income

Sorry, not sure about that one. I don't tutor accounting.

24) To best measure the liquidity of a business:

A) calculate the current ratio

B) calculate the leverage ratio

C) calculate the working capital

D) calculate both the working capital and current ratio

Again, business and accounting are not my thing. Sorry.

OH OK SORRY

No problem. But if you have other questions like the one I solved that require algebra, let me know :)

OK GOT CHA

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