Green Apple Fruit Farms Has a Four-Day Delay in Processing

question 7

Multiple Choice

Green Apple Fruit Farms has a four-day delay in processing and clearing. The daily interest rate is 0.23%. On an average day, the firm receives $7,500 in payments. What is the company's float?

• A) $15,000
• B) $30,000
• C) $33,000
• D) $35,000
• E) $45,000

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Definitions:

LIFO

LIFO (Last In, First Out) is an inventory valuation method where the most recently produced or acquired items are the first to be expensed.

Cost of Goods Sold

Expenses directly related to manufacturing the products a company sells, involving costs of materials and labor.

Perpetual Inventory System

An inventory management system that keeps continuous, real-time records of goods as they are received and sold.

FIFO

First-In, First-Out method of inventory valuation where older stock is sold first.