Use the Following Information for Questions 114 Through 118

question 38

Multiple Choice

Use the following information for questions 114 through 118.
The following data concerning the retail inventory method are taken from the financial records of Welch Company.
-If the ending inventory is to be valued at approximately the lower of cost or market, the calculation of the cost-to-retail ratio should be based on goods available for sale at (1) cost and (2) retail, respectively of

• A) $837,000 and $1,230,000.
• B) $837,000 and $1,188,000.
• C) $837,000 and $1,170,000.
• D) $819,000 and $1,170,000.

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Definitions:

Annually Balanced Budget

A fiscal strategy or policy where government revenues are planned to match expenditures within a single year, aiming to prevent budget deficits.

Tax Revenues

Tax revenues refer to the income that is collected by the government from individuals and businesses, primarily through taxes such as income tax, sales tax, and property tax.

Government Spending

Government spending encompasses all the expenditures of government agencies and departments, including investments, consumption, and transfers, aimed at achieving economic and social objectives.

Cyclically Balanced Budget

A budget philosophy calling for budget deficits during recessions to be financed by budget surpluses during expansions.