Chad runs a coffee shop that has annual revenues of $300,000, supply costs of $60,000, and employee salaries of $60,000. he has the option of renting out the coffee shop for $80,000 per year, and he has three outside offers from competitors to work as a senior barista at starbucks (for an annual salary of $30,000), at simon's coffee house (for an annual salary of $40,000), and at pete's coffee shop (for an annual salary of $60,000). he can only hold one job at a time. what should chad do? a. he should continue to run his coffee shop. b.he should rent out his coffee shop and take the job at pete's. c.he should rent out his coffee shop and take the job at starbucks. d.he should rent out his coffee shop and take the job at simon's.

The correct answer is option A.

Explanation:

Chad runs a coffee shop that has annual revenues of $300,000, supply costs of $60,000, and employee salaries of $60,000.

He can rent out the coffee shop for $80,000 per year.

He has three outside offers from competitors to work as a senior barista at Starbucks for an annual salary of $30,000, at Simon's coffee house for an annual salary of $40,000, and at Pete's coffee shop for an annual salary of $60,000.

The profit from coffee shop

= Total revenue - Total cost

= $300,000 - ($60,000 + $60,000)

= $300,000 - $120,000

= $180,000

The income if he rents coffee shop and starts working as Barista at highest paying coffee shop

= $80,000 + $60,000

= $140,000

Since, the profit is higher in running the coffee shop, Chad should continue to run his coffee shop.

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.

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