On July 1,2010,as a Long-Term Investment in Available-For-Sale Securities,Wildlife Supply

question 2

Multiple Choice

On July 1,2010,as a long-term investment in available-for-sale securities,Wildlife Supply Company purchased 6,000 shares of the preferred stock (nonvoting) of Nature Company for $30 per share (18,000 shares outstanding) .The records of Nature Company reflect the following:



$\begin{array}{lccc}\text { 2010 net income} &\$ 600,000 \\\text { Dividends declared and paid during December, 2010 } &\$ 6,500\\\text { December 31,2010 market price per share} &\$ 27 \\\end{array}$
The amount reported on the balance sheet by Wildlife Company for its investment at December 31,2010 would be which of the following?

• A)$160,000
• B)$162,000
• C)$182,000
• D)$200,000

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Definitions:

Unit Quantity Discounts

Price reductions given to customers for purchasing goods in large volumes or quantities.

Lot Size

The quantity of items that are processed, ordered, produced, or delivered as a single batch or unit.

Average Inventory

The mean amount of inventory a business has in stock over a certain period, calculated to assess inventory efficiency.

Flow Time

The total time a product or service takes to move through a production system, from start to finish.