Crabapples Inc If Crabapples Sold 5,000 Boxes of Dry Fruits During the Information

question 119

Multiple Choice

Crabapples Inc. purchases and sells dry fruit boxes. The following information summarizes its operating activities for 2015: $$\begin{array} { | l | r | } \hline \text { Selling Expenses } & \$ 9,375 \\\hline \text { Inventory on December 31, 2015 } & 32,500 \\\hline \text { Inventory on January 1, 2015 } & 46,875 \\\hline \text { Purchases of merchandise } & 84,375 \\\hline \text { Rent for store } & 12,500 \\\hline \text { Sales commissions } & 7,031 \\\hline \text { Sales revenue } & 168,750 \\\hline\end{array}$$ If Crabapples sold 5,000 boxes of dry fruits during the year, what is the cost per box of dry fruits?

• A) $72.28
• B) $32.75
• C) $10.55
• D) $19.75

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Definitions:

Present Value Factors

The factors used to calculate the present value of a future amount of money or stream of cash flows, given a specific discount rate.

Long-term Lease Obligation

A financial commitment that involves leasing an asset for a long-term period, noted on the balance sheet as a liability.

Capital Lease

A Capital Lease is a lease agreement that has the characteristics of a purchase agreement for accounting purposes.

Present Value

The current value of a future amount of money or stream of cash flows given a specified rate of return.