Calculate the Cost of Goods Sold for a Merchandiser Using

question 166

Multiple Choice

Calculate the cost of goods sold for a merchandiser using the periodic inventory system from the following details. $$\begin{array} { | l | r | } \hline \text { Purchases } & \$ 510,000 \\\hline \text { Beginning Merchandise } & \\\text { Inventory } & 180,000 \\\hline \text { Purchase Returns and } & \\\hline \text { Allowances } & 50,000 \\\hline \text { Purchase Discounts } & 14,000 \\\hline \text { Freight In } & 15,000 \\\hline \text { Ending Merchandise Inventory } & 180,00 \\\hline\end{array}$$

• A) $510,000
• B) $461,000
• C) $476,000
• D) $821,000

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Definitions:

Required Return

The minimum gain needed from an investment to make it worthwhile for the investor, considering the risk associated.

Beta

A measure of a stock's volatility in relation to the overall market; a beta higher than 1 indicates higher volatility than the market, and a beta lower than 1 indicates lower.

Risk-Free Rate

The theoretical rate of return of an investment with zero risk, typically represented by the yield on government bonds.

Intrinsic Value

The actual value of a company or an asset based on underlying perception of its true value including all aspects of the business, in terms of both tangible and intangible factors.