What Is the Value of the Ending Finished Goods Inventory

question 78

Multiple Choice

What is the value of the ending Finished Goods Inventory?

• A)$13,261.50
• B)$24,628.50
• C)$26,481.00
• D)$164,190.00

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Definitions:

Net Operating Income

Net operating income is the total profit of a company derived from its regular, core business operations, excluding deductions for interest and taxes.

Average Operating Assets

Average operating assets are the mean value of the resources employed in a company's operations over a certain period, used to evaluate the efficiency of asset use in generating revenue.

Residual Income

The amount of income that an individual or company retains after all operating expenses and charges, including cost of capital, have been deducted.

Minimum Required Rate

The lowest acceptable rate of return on an investment that a manager or investor specifies, considering the project's risk level.