Readers Unlimited Sells Books - What Is Cost of Goods Available for Sale?
A)$105,000

question 120

Multiple Choice

Readers Unlimited sells books.The following information summarizes the company's operating expenses for the year: $$\begin{array} { | l | c c | } \hline \text { Purchases } & \$ & 90,000 \\\hline \text { Operating expenses } & \mathbf { \$ } & 53,000 \\\hline \text { Bepinning merchandise inventary } & \mathbf { 1 } & 12,000 \\\hline \text { Ending merchandise inventory } & \mathbf { \$ } & 15,000 \\\hline \text { Sales revenue } & \mathbf { \$ } & 172,000 \\\hline\end{array}$$
- What is cost of goods available for sale?

• A)$105,000
• B)$ 82,000
• C)$ 87,000
• D)$102,000

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Definitions:

Privatisation

The selling of state‐owned enterprises into private ownership.

State-Owned Enterprises

Organizations that are owned and operated by the government and play a role in the delivery of public services or the production of goods.

Private Ownership

Ownership of assets by individuals or corporations rather than by the state or public entities.

Licensing Agreement

Occurs when a firm pays a fee for the rights to make or sell another company’s products.