A Macarty Company's Records Indicate the Following Information for the Year

question 82

Multiple Choice

A. Macarty Company's records indicate the following information for the year: $\begin{array}{lr}\text { Merchandise inventory, } 1 / 1 & \$ 550,000 \\\text { Purchases } & 2,250,000 \\\text { Net sales } & 3,100,000\end{array}$ On December 31 a physical inventory determined that ending inventory of $600000 was in the warehouse. A. Macarty's gross profit on sales has remained constant at 30%. A. Macarty suspects some of the inventory may have been taken by some new employees. At December 31 what is the estimated cost of missing inventory?

• A) $30000
• B) $42000
• C) $180000
• D) $600000

Understand different types of stock indices and their calculations.

Grasp the concept of options and futures in financial markets.

Identify and calculate interest rates in various financial contexts.

Comprehend common stock characteristics and shareholder rights.

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Definitions:

Convertible Bond

An investment vehicle that permits conversion into a fixed number of the issuing company's equity shares at select moments over its lifespan, usually upon the decision of the person owning the bond.

Arbitrage

The practice of buying and selling equivalent assets in different markets to take advantage of a price difference.

Exercise Price

The specified price at which an option contract can be exercised, determining the buy or sell price of the asset under option.