Williams Company Had the Following Balances and Transactions During 2013

question 127

Multiple Choice

Williams Company had the following balances and transactions during 2013. What would the company's inventory amount be on the December 31, 2013 balance sheet if the perpetual LIFO method is used? (Answers are rounded to the nearest dollar.)

• A)$1,050
• B)$1,100
• C)$900
• D)$1,200

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Definitions:

Operating Capability

The ability of a company to maintain efficient operations and produce goods or services at a consistent level of quality.

Physical Capacity

A measure of the maximum amount of work or production an asset can achieve in a certain period under normal conditions.

Working Capital

The difference between a company's current assets and current liabilities, representing the short-term liquidity.