The Following Information Is Available for Kerr Company for 2007

question 62

Multiple Choice

The following information is available for Kerr Company for 2007: $$\begin{array} { l r } \text { Freight-in } & \$ 30,000 \\\text { Purchase returns } & 75,000 \\\text { Selling expenses } & 150,000 \\\text { Ending inventory } & 260,000\end{array}$$ The cost of goods sold is equal to 400% of selling expenses.What is the cost of goods available for sale?

• A)$600,000.
• B)$890,000.
• C)$815,000.
• D)$860,000.

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Definitions:

Entrepreneurship

The process of designing, launching, and running a new business, often initially a small business.

Angel Investor

A wealthy individual willing to invest in a new venture in return for an equity stake.

Equity

The value of an ownership interest in property, including shareholders' equity in a corporation, representing assets minus liabilities.

Venture Capitalists

Individuals who make large investments in new ventures in return for an equity stake in the business.