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

question 201

Multiple Choice

The following items are taken from the financial statements of the Postal Service for the year ending December 31, 2018:
What is the company's net income for the year ending December 31, 2018?

• A) $12,000
• B) $28,000
• C) $42,000
• D) $133,000

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Definitions:

Inventory

Goods and materials that a business holds for the ultimate goal of resale or processing.

Retail Method

A technique used by retailers to value inventory based on the retail price of goods, typically used to estimate ending inventory and cost of goods sold.

Inventory Cost

The total cost associated with holding and managing inventory, including costs of storage, insurance, deterioration, and obsolescence.

Gross Profit

The profit a company makes after deducting the costs associated with making and selling its products or the costs associated with providing its services.