Answer the Following Questions Using the Information Below:
Pederson Company

question 286

Multiple Choice

Answer the following questions using the information below:
Pederson Company reported the following:
$\begin{array}{ll}\text { Manufacturing costs } & \$ 2,000,000 \\\text { Units manufactured } & 50,000 \\\text { Units sold } & 47000 \text { units sold for } \$ 75 \text { per unit } \\\text { Beginning inventory } & 0 \text { units }\end{array}$
-What is the cost of ending finished goods inventory?

• A)$105 000
• B)$120 000
• C)$225 000
• D)$1 880 000

Gain insights into the Miller-Orr and BAT models for optimal cash management.

Appreciate the different needs for holding cash: transactional, precautionary, and speculative.

Understand the mechanisms to reduce collection float and the role of electronic payments in managing float.

Recognize the costs associated with holding too little or too much cash, and the role of money market instruments in liquidity management.

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Definitions:

Essential Services

Services considered necessary for the safety, health, and welfare of the public, which may be exempt from labor strikes.

Economic Markets

Systems where parties engage in exchange of goods, services, and information, often regulated by supply and demand.

Unilateral Change

Actions taken by one party, especially in a contractual relationship, without the agreement or consent of the other party.

Bad Faith Bargaining

Negotiating with deceitful intent or a refusal to engage in meaningful negotiation, violating the principles of fair bargaining.