1. Ashton's Goods purchases $100,000 of inventory during the year, has beginning of the period inventory of $15,000, and sells $85,000 of inventory during the year for $150,000. What is the companys inventory balance to be reported on its balance sheet at year end?

a) $65,000

b) $70,000

c) $15,000

d) $30,000

2. Under which method of inventory cost flows is the cost flow assumed to be in the reverse order in which the expenditures were made? a) Lower of cost or market

b) Average cost

c) First-in, first-out

d) Last-in, first-out

3. Blue Company and Yellow Company reported the following information in their financial statements:

To the closest hundredth, how much is inventory turnover for Blue Company?

a) 3.21

b) 3.00

c) 2.57

d) 4.29

4. Which of the following would not be reported as a liability in the balance sheet?

a) Future principal payments due on long-term debt

b) Pension plan benefit obligations

c) Contractual commitments to purchase inventory in the future

d) Future principal payments on finance leases