Using the Information Below, Calculate Gross Profit for the Period

question 199

Multiple Choice

Using the information below, calculate gross profit for the period: $\begin{array}{lr}\text { Sales revenues for the period }&\$1,304,000\\\\\text { Operating expenses for the period } & 239,000 \\\text { Finished Goods Inventory, January } 1 & 36,000 \\\text { Finished Goods Inventory, December } 31 & 41,000 \\\text { Cost of goods manufactured for the period } & 540,000\end{array}$

• A) $769,000.
• B) $535,000.
• C) $448,000.
• D) $530,000.
• E) $774,000.

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Definitions:

Optimal Average Cash Balance

The ideal level of cash a company seeks to maintain to minimize the costs associated with holding too much or too little cash.

Weekly Interest Rate

Interest calculated and applied on a weekly basis, often referred to in terms of loans or savings.

BAT Model

Behaviorally Adjusted Time (BAT) Model refers to a calculation method designed to account for the inefficiencies human behavior introduces into the financial markets.

Optimum Initial Cash Balance

The ideal amount of cash a company needs on hand to operate efficiently without incurring excess costs or missing out on opportunities.