The total dollar amount of assets to be classified as current assets is
a) $300,000
b) $190,000
c) $370,000
d) $220,000
14. Use this inventory information for the month of May to answer the following question. May 1 7 18 Beginning inventory Purchase Sale Purchase 20 units @ $20 70 units @ $25 40 units 20 units @ $15 22 Assuming that a periodic inventory system is used, what is ending inventory (rounded) under the average-cost method? $1088.8 . B. $890.8 OC. $2,004.3 D. $1,558.9 J. & B. Auto Parts Balance Sheet December 31, 2010 Assets Cash Short-term investments Notes receivable (due in ten months) Accounts receivable Merchandise inventory Special fund for purchasing a building Land Building Less accumulated depreciation Trademark Total assets $ 60,000 40,000 30,000 20,000 70,000 80,000 90,000 $100,000 20.000 80,000 70.000 $540.000 Liabilities S 50,000 Notes payable (due in six months) Accounts payable Salaries payable Mortgage payable (due in seven years) Total liabilities 20,000 10,000 90.000 $170,000 Owner's Equity Cheryl Stein, Capital Total liabilities and owner's equity 370.000 $540,000 Alcorn & Zeto Company Income Statement For the Year Ended December 31, 2010 Revenues Net sales $102,500 Dividend income 8.750 Total revenues Costs and expenses Costs of goods sold $ 30,000 Selling expenses 20,000 General and administrative expenses 13,750 Interest expense 6.250 Total costs and expenses Net income $111,250 70,000 $51.250 If the income statement were prepared in a multistep form, operating expenses would be $40,000 A $70,000 . $63,750 D. $33,750 15. Cost of goods sold equals $500,000, Beginning inventory equals 40,000, Net sales equals $600,000, Net income cquals $ 60,000, and Ending inventory equals $30,000. Inventory turnover will be 14.29 times. 16.66 times B c. 17.14 times D. 1.71 times 5. Use this inventory information for the month of March to answer the following questions. Mar. 1 Beginning inventory 7 Purchase 18 Sale 22 Purchase 40 units @ $40 50 units @ $50 55 units 10 units @ $60 Assuming that a perpetual inventory system is used, what is cost of goods sold on a LIFO basis? A. $2,850 . $2,700 c. $2,350 OD. $2,720 12. Goods totaling $7,000 purchased February 2 on terms of 2/10, 1/30 and FOB destination. The cost of shipping was $200. What is the cost of goods, if paid for on February 127 A $6,860 . $7,056 $144 . D. $6,664 Question 15 4. A company's merchandise inventory includes all of the following, except A. goods on shelves. . goods in storerooms. . goods in possession, but which cannot be sold. D. damaged goods that can be sold at a reduced price. 13. David wrote a check for $ 350 and mailed it on next day. He recorded it as $530 incorrectly. On the bank reconciliation, the $180 error should be added to the balance per bank. deducted from the balance per books. deducted from the balance per bank. D. added to the balance per books
