Information for Firm ABC What Is the Expected Inventory at the End of April

question 69

Multiple Choice

Information for firm ABC: $$\begin{array} { l r } \text { Inventory at the end of April, 2008: } & 200 \text { units } \\\text { Expected demand during April, 2008: } & 50 \text { units } \\\text { Production expected during April, 2008: } & 100 \text { units }\end{array}$$
What is the expected inventory at the end of April 2008?

• A) 350
• B) 250
• C) 150
• D) 50
• E) 80

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Definitions:

Subsidiary

A company that is controlled by another company, known as a parent company, through the ownership of more than half of its voting stock.

Stock Dividend

A distribution of extra shares to shareholders, as opposed to a cash payment, as a form of dividend.

Common Stock

A type of equity security that represents ownership in a corporation, usually carrying voting rights and potential dividends.

Consolidation Process

The procedure of combining the financial statements of two or more entities into one, usually for a parent company and its subsidiaries.