17-19

17. Given the data below for a firm in its first year of operation, determine net income under the accrual basis of accounting Revenue earned $16,000 Accounts receivable 3,000 Expenses incurred 7.250 Accounts payable (related to expenses) 750 Supplies purchased with cash 1,800 a. b. C. d. $8,750 $11,000 $6,500 $9,200 18 Jenks Company developed the following information about its inventories in applying the lower of cost or market (LCM) basis in valuing inventories: Product Cost Market A $57,000 $60,000 B 40,000 38,000 80,000 81,000 if Jenks applies the LCM basis, the value of the inventory reported on the balance sheet would be a. $177,000 b. $179,000 C. $175,000 d. $181,000 19. The following information was available for Camara Company at December 31 beginning inventory $80,000, ending inventory $120,000, cost of goods sold $560,000, and sales $800,000. Camara's inventory turnover for the year was a. 8.0 times b. 6.7 times c. 5.6 times. d. 4.7 times