The Following Information Was Provided by Jimbob Co What Was Beginning Finished Goods Inventory?
A)$200,000

question 15

Multiple Choice

The following information was provided by Jimbob Co. for the year just ended: $$\begin{array} { | l | r | } \hline \text { Cost of goods manufactured } & \$ 500,000 \\\hline \text { Ending finished goods inventory } & \$ 100,000 \\\hline \text { Sales } & \$ 800,000 \\\hline \text { Gross margin } & \$ 200,000 \\\hline\end{array}$$ What was beginning finished goods inventory?

• A)$200,000.
• B)$300,000.
• C)$400,000.
• D)$100,000.

---

Definitions:

APS

Assumes "APS" refers to "Average Propensity to Save," which is the proportion of total income or output that is saved rather than spent on consumption.

Induced Consumption

Refers to the portion of consumer spending that increases or decreases in response to changes in income.

Disposable Income

The pot of funds households have at their disposal for saving and spending, post-income tax.

MPC

refers to the Marginal Propensity to Consume, which is the fraction of additional income that a household spends on consumption.