As a Result of a Thorough Physical Inventory, Horace Company

question 101

Multiple Choice

As a result of a thorough physical inventory, Horace Company determined that it had inventory worth $320,000 at December 31, 2015. This count did not take into consideration the following facts: Herschel Consignment currently has goods worth $47,000 on its sales floor that belong to Horace but are being sold on consignment by Herschel. The selling price of these goods is $75,000. Horace purchased $22,000 of goods that were shipped on December 27, FOB destination, that will be received by Horace on January 3. Determine the correct amount of inventory that Horace should report.

• A)$320,000.
• B)$340,000.
• C)$367,000.
• D)$387,000.

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Definitions:

Sustain Growth

The ability of an organization or economy to increase its output or income over a period while maintaining financial and environmental balance.

Four Factors

Often refers to fundamental factors used in various contexts, specifics depend on the field of application.

Internal Growth Rate

The highest rate at which a firm can grow its sales, revenues, and earnings using only internal financing.

Finance Perspective

The viewpoint or approach focusing on financial management, investments, and the economic aspects of business operations.