Ben Company Has the Following Sales Forecast for the Next

question 103

Multiple Choice

Ben Company has the following sales forecast for the next quarter: April, 20,000 units; May, 24,000 units; June, 28,000 units.Sales totaled 16,000 units in March.The March finished goods inventory was 4,000 units.End-of-month finished goods inventory levels are planned to be equal to 20 percent of the next month's planned sales.
-The planned ending inventory of finished goods for May is

• A) 5,600 units.
• B) 4,000 units.
• C) 5,000 units.
• D) 3,200 units.

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Definitions:

Parent

A company that holds a controlling interest in another company, making the other company its subsidiary.

Par Value

Par value is the nominal or face value of a bond, share of stock, or coupon as stated by the issuer, which may differ significantly from its market value.

Debt Investments-HTM

Investments in debt securities that are held to maturity, meaning the investor plans to hold the securities until they are paid off at their maturity date.

Stock Investments

Securities representing equity or ownership interest in a corporation, allowing investors to gain dividends and potentially capital gains.