The Production Budget Shows Expected Unit Sales Are 100,000

question 139

Short Answer

The production budget shows expected unit sales are 100,000.The required production units are 104,000.What are the beginning and desired ending finished goods units, respectively? $$\begin{array} { l c c } & \text { Beginning Units } & \text { Ending Units } \\\text { a. } & 10,000 & 6,000 \\\text { b. } & 6,000 & 10,000 \\\text { c. } & 4,000 & 10,000 \\\text { d. } & 10,000 & 4,000\end{array}$$

---

Definitions:

Present Value

The current worth of a future sum of money or stream of cash flows, given a specified rate of return.

Net Present Value

A financial metric used to evaluate the profitability of an investment or project, calculated by subtracting the initial investment from the present value of future cash flows.

Internal Rate Of Return

The discount rate at which the net present value of an investment project is zero; the rate of return promised by a project over its useful life.

Discount Rate

The rate of interest employed to calculate today's value of anticipated future cash streams in discounted cash flow evaluation.