Crouse Corporation Has the Following Information

question 69

Multiple Choice

Crouse Corporation has the following information:
The cost of goods sold percentage is 65 percent, and the desired inventory level is 25 percent of next month's sales.
-The desired ending inventory for June is

• A) $40,625.
• B) $39,000.
• C) $21,000.
• D) $42,250.

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Definitions:

Acquiring Firm

A company that purchases a majority interest in another company to take control of it.

Parent

A company that holds a controlling interest in one or more subsidiaries, or an individual who has a child.

Subsidiary

A company that is controlled by another company, known as the parent company, through majority share ownership.

Diversification

A risk management strategy that mixes a wide variety of investments within a portfolio to minimize the impact of any single asset's performance.