Thomas Company Provided the Following Particulars for Year 2015

question 9

Multiple Choice

Thomas Company provided the following particulars for year 2015: Calculate the average merchandise inventory held by Thomas Company during the year.

• A)$975,000
• B)$487,500
• C)$325,000
• D)$650,000

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Definitions:

Strip Bond

A type of bond where the coupon payments have been separated from the principal, allowing them to be sold independently as zero-coupon bonds.

Discount Rate

The interest rate charged by central banks for loans to commercial banks or the rate used in discounted cash flow analysis to determine present value.

Issue Price

The price at which a new issue of securities (like stocks or bonds) is offered to the public by an issuer.

Decrease Rate

The rate at which a quantity is reduced over a specific period of time.