Sanchez Company Engaged in the Following Transactions During Year 1:1)Started

question 101

Multiple Choice

Sanchez Company engaged in the following transactions during Year 1:1) Started the business by issuing $13,500 of common stock for cash.2) The company paid cash to purchase $8,100 of inventory.3) The company sold inventory that cost $5,500 for $11,400 cash.4) Operating expenses incurred and paid during the year, $5,000.Sanchez Company engaged in the following transactions during Year 2:1) The company paid cash to purchase $11,800 of inventory.2) The company sold inventory that cost $9,700 for $18,000 cash.3) Operating expenses incurred and paid during the year, $6,000.Note: Sanchez uses the perpetual inventory system. What is the amount of inventory that will be shown on the balance sheet at December 31, Year 2?

• A)$4,700
• B)$2,100
• C)$21,600
• D)$10,200

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Definitions:

Variability

The extent to which data points in a statistical distribution or data set diverge from the average or mean.

Criterion Variables

Outcome variables that are used to assess the effects of manipulations or treatments in an experiment.

Predictor Variables

Predictor variables are the independent variables in a study that are used to predict the outcome of the dependent variable(s).

Scatterplot

Graphic representation of each individual's scores on two variables. The score on the first variable is found on the horizontal axis and score on the second variable is found on the vertical axis.