Landis Company Is Preparing Its Financial Statements

question 75

Multiple Choice

Landis Company is preparing its financial statements.Gross margin is normally 40% of sales.Information taken from the company's records revealed sales of $25,000;beginning inventory of $2,500 and purchases of $17,500.The estimated amount of ending inventory would be:

• A)$15,000.
• B)$5,000.
• C)$8,000.
• D)$10,000.

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Definitions:

Unlimited Wants

Refers to the insatiable desire of consumers to possess goods and services that provide utility, exceeding the resources available to fulfill them.

Fresh Water

Fresh water is water with a low salt concentration, found in rivers, lakes, streams, and underground aquifers, essential for drinking, agriculture, and industry.

Scarce Resource

A resource that is limited in availability and can be used up or depleted, making it valuable and subject to economic study for optimal use.

Unlimited Wants

The economic concept that humans have endless desires for goods and services.