An October Sales Forecast Projects 7,000 Units Are Going to Be

question 23

Multiple Choice

An October sales forecast projects 7,000 units are going to be sold at a price of $11.50 per unit.The desired ending iventory in units is 15% higher than the beginning inventory of 1,000 units.Total October sales are anticipated to be

• A) $69,000
• B) $80,500
• C) $70,000
• D) $92,000

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Definitions:

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing ownership interest spread among individual shareholders.

Fair Value

An approximation of the cost at which an asset or liability might be purchased or sold in a present-day deal between agreeable participants.

Excess Amortization

The portion of amortization expenses that exceeds the cash or profit generated by the asset being amortized, typically relevant in high depreciation contexts.