Williams Company Had the Following Balances and Transactions During 2013

question 52

Multiple Choice

Williams Company had the following balances and transactions during 2013. $$\begin{array} { | l | l | } \hline \text { Beginning inventory } & 10 \text { units at } \$ 70 \\\hline \text { June } 10 & \text { Purchased } 20 \text { units at } \$ 80 \\\hline \text { December } 30 & \text { Sold } 15 \text { units } \\\hline \text { December } 31 & \text { Replacement cost } \$ 60 \\\hline\end{array}$$ What would the company's inventory amount be on the December 31,2013 balance sheet if the perpetual average-costing method is used? (Answers are rounded to the nearest dollar.)

• A) $1,200
• B) $1,150
• C) $1,050
• D) $900

Examine the impact of competitive forces and the need for innovation in product and service offerings.

Understand global population trends and demographic estimates.

Recognize demographic characteristics that describe a population.

Analyze the impact of demographic changes on society and markets.

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Definitions:

Net Present Value

A method of evaluating investments by calculating the present value of all expected future cash flows, minus the initial investment cost.

Rate of Return

A measure of the gain or loss on an investment over a specified period, expressed as a percentage of the investment's initial cost.

Desired Rate

An anticipated rate of return on investment or interest rate target, often set as a benchmark for financial decisions or investment appraisal.

Present Value Index

A calculation used to assess the profitability of an investment relative to its current cost, by discounting future cash flows.