70. You just won the Georgia State Lottery. Your prize is $7.5 million spread out in even annual payments over the next 15 years. You have the option of taking the "Cash Option", which gives you the calculated present value of your annuity using an annual interest rate of 8%. If you were planning on sticking any money earned from the lottery in a fund that has a guaranteed rate of 5%, assuming away all tax consequences) which option would net you the most money at the end of 15 years? a. Taking the annuity payments and sticking them in the fund b. Taking the "Cash Option" and sticking the money in the fund e. It doesn't matter, both options will net you the same amount of money in 15 years d. Joining the church of scientology (don't pick this answer). 71. Under the periodic inventory system, an overstatement of ending inventory results in which of the following in the present period? A. Overstatement of Cost of Goods Sold. C. Understatement of Net Income. B. Understatement of Retained Earnings. D. Overstatement of Net Income. 72. The April 30, 2016 bank statement for Thimble Corporation shows an ending balance of $38.496. The unadjusted cash account balance was $32,395. The accountant for Thimble gathered the following info: There was a deposit in transit for $4,240 The bank statement reports a service charge of $39 The bank statement shows interest earned of $95 Outstanding checks totaled $10,935 The bank statement included a $650 NSF check deposited in April What is the true cash balance as of April 30, 2016? a. $27,656 b. $27,006 c. $31,801 d. $31,896 74. In an inflationary environment, A. a company's net income will be the same regardless of whether LIFO or FIFO is used. B. a company's cost of goods sold will be lower if it uses LIFO as opposed to FIFO. C. a company's net income will be higher if it uses FIFO than if it uses LIFO D. a company's assets will be lower if it uses FIFO as opposed to LIFO cost flow. Use the following information for questions 75-77: Dundee Enterprises purchased inventory items as follows: Dundee sold 250 units on 5/1/2016 for $18.00 each. Date of Purchase 1/1/2016 2/1/2016 3/8/2016 4/9/2016 No. of Items 100 200 150 50 Cost $ 8.50 $ 9.00 $ 9.30 $ 10.50 75. Dundee's cost of goods sold under FIFO would be: A. $1,860 B. $2,200. C. $2,310. D. $2,100. 76. Dundee's ending inventory under LIFO would be: A. $2,730. B. $2,460. C. $2,220. D. $2,200. 77. Dundee's ending inventory under weighted average would be approximately: A. $2.285. B. $2,340. C. $2,361. D. $1,980