Lionworks Enterprises Had the Following Inventory Data

question 32

Multiple Choice

Lionworks Enterprises had the following inventory data:

Assuming FIFO,what is the ending inventory after the July 14 sale?

• A)$208
• B)$228
• C)$232
• D)$214

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Definitions:

Tax Rate

The percentage at which an individual or corporation is taxed, which can vary depending on income or profits respectively.

WACC

Weighted Average Cost of Capital; the average rate of return a company is expected to pay to all its security holders to finance its assets.

Par Value

The face value of a bond or stock as stated on the certificate or instrument, which differs from its market value.

WACC Calculation

The process of calculating the Weighted Average Cost of Capital, which measures a firm's cost of capital from all sources, weighted according to the proportion of each capital component.