The Merchant Tire Company Provided the Following Information for the Month

question 44

Multiple Choice

The Merchant Tire Company provided the following information for the month of February: $$\begin{array} { l c } \text { Cost of goods manufactured } & \$ 147,000 \\\text { Beginning finished goods inventory } & \$ 23,000 \\\text { Cost of goods sold } & \$ 129,000\end{array}$$ The company's balance in their finished goods inventory account at the end of February is:

• A)$23,000
• B)$18,000
• C)$5,000
• D)$41,000

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Definitions:

Dividend Yield

A financial ratio that shows how much a company pays out in dividends each year relative to its stock price.

Common Stock

Certificates issued by a corporation to investors as proof of their ownership rights; an account representing the ownership rights of investors in a corporation; a class of stock issued by a corporation that bears no preference rights.

Market Price

The amount at which an asset or service could be bought or sold in a current transaction between willing parties.

Management's Discussion

A section of a company’s annual report where management presents an analysis of the company’s performance, future prospects, and financial health.