In January 2015, Tim's Gyms, Inc

question 10

Multiple Choice

In January 2015, Tim's Gyms, Inc. owned machines valued at $1 million. During the year, the market value of the equipment fell by 30 percent. During 2015, Tim spent $200,000 on new machines. During 2015, Tim's gross investment totaled

• A) $1 million.
• B) $300,000.
• C) $200,000
• D) $900,000.

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Definitions:

Direct Materials Purchases

The acquisition of raw materials that are directly incorporated into a finished product during the manufacturing process.

Budgeted Cash Disbursements

An estimation of all cash payments that a business expects to make over a specified period, often part of a cash flow forecast or budget.

Wages Expense

The total amount of monetary compensation paid to employees for services rendered during a specific period.

Coastal Division

A segment within an organization or geographical area focused on activities, development, or resources located near or on the coast.