Use This Information to Answer the Following Question In Addition,beginning Merchandise Inventory Was $22,000 and Ending Merchandise Inventory

question 122

Multiple Choice

Use this information to answer the following question. $\begin{array}{|l|r|r|}\hline \text { Account Name } & \text { Debit } & \text { Credit } \\\hline \text { Sales } & & 300,000 \\\text { Sales Returns and Allowances } & 10,000 & \\\text { Purchases } & 62,000 & \\\text { Purchases Returns and Allowances } & & 8,000 \\\text { Freight-In } & 12,000 & \\\text { Selling Expenses } & 30,000 & \\\text { General and Administrative Expenses } & 110,000 & \\\hline\end{array}$ In addition,beginning merchandise inventory was $22,000 and ending merchandise inventory was $14,000.
Cost of goods sold for the period was

• A) $74,000.
• B) $62,000.
• C) $88,000.
• D) $58,000.

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Definitions:

Semistrong Form

A level of market efficiency that assumes stock prices already reflect all publicly available information, rendering fundamental analysis ineffective at achieving superior returns.

Constant Growth Model

A model for valuing a stock by assuming it will pay dividends that grow at a constant rate indefinitely.

Dividend Yield

Dividend yield is a financial ratio that shows how much a company pays out in dividends each year relative to its stock price.

Expected Return

A synonym for Expected Rate of Return, signifying the profit or loss investors anticipate from an investment, commonly shown as a percentage.