Super Tread Inc Calculate the Amount of Ending Finished Goods Inventory Reported on Has

question 129

Multiple Choice

Super Tread Inc.is a large manufacturer of auto tires.Super Tread has provided the following information: $$\begin{array} { | l | r | } \hline \text { Sales Revenue } & \$ 55,000 \\\hline \text { Beginning Finished Goods Inventory } & 15,500 \\\hline \text { Cost of Goods Sold } & 37,500 \\\hline \text { Cost of Goods Manufactured } & 44,500 \\\hline\end{array}$$ Calculate the amount of ending Finished Goods Inventory reported on Super Tread's balance sheet.

• A) $10,500
• B) $60,000
• C) $22,500
• D) $7000

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Definitions:

Balance Sheet

A balance sheet is a financial statement that portrays a company's financial position at a specific point in time, listing assets, liabilities, and shareholders' equity.

Net Realizable Value

The estimated selling price of goods or assets in the ordinary course of business minus any costs involved in the sale or disposal process.

Accounts Receivable Turnover

A financial ratio that measures how efficiently a company collects revenue from its credit sales by comparing net credit sales with the average accounts receivable.

Net Realizable Value

The estimated selling price of goods minus the cost of their sale or disposal.