The Following Items Are Taken from the Financial Statements of the Postal

question 27

Multiple Choice

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2015: $\begin{array}{lr}\text { Accounts payable } & \$ 18,000 \\\text { Accounts receivable } & 11,000 \\\text { Accumulated depreciation - equipment } & 28,000 \\\text { Advertising expense } & 21,000 \\\text { Cash } & 15,000 \\\text { Common stock } & 42,000 \\\text { Dividends } & 14,000 \\\text { Depreciation expense } & 12,000 \\\text { Equipment } & 210,000 \\\text { Insurance expense } & 3,000\\\text { Note payable, due 6/30/16 } & 70,000 \\\text { Prepaid insurance (12-month policy) } & 6,000 \\\text { Rent expense } & 17,000 \\\text { Retained earnings (1/1/15) } & 60,000 \\\text { Salaries and wages expense } & 32,000 \\\text { Service revenue } & 133,000 \\\text { Supplies } & 4,000 \\\text { Supplies expense } & 6,000\end{array}$ What is total liabilities and stockholders' equity at December 31, 2015?

• A) $176,000
• B) $218,000
• C) $190,000
• D) $232,000

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Definitions:

Chase Strategy

A management approach that adjusts production rates to align with fluctuations in demand, aiming to match output with demand and minimize inventory costs.

Aggregate Planning

A process by which a company determines ideal levels of capacity, production, subcontracting, inventory, stockouts, and pricing over a specified time period.

Demand Estimation

The process of determining the expected demand for a product or service, based on historical data, market trends, and other influencing factors.

Chase Strategy

A demand-matching approach in capacity planning, where output rates are adjusted to match demand forecasts, minimizing inventory levels.