TFS Corporation, a Retail Company Selling Hotel Furniture, Has Just

question 22

Multiple Choice

TFS Corporation, a retail company selling hotel furniture, has just completed its master budget for the next fiscal year. Ending inventory is budgeted at 20% of cost of goods available for sale. Selected data from that process appear in the table below:
TFS' budgeted profit before taxes for the next fiscal year will be:

• A)$106,000
• B)$40,000
• C)$66,000
• D)$92,000

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Definitions:

Assignor

In a contract, the party who transfers his or her rights to a contract to a third party (an assignee), giving the assignee the right to collect what was contractually agreed on in the original contract.

Needed Repairs

Needed repairs refer to maintenance or fixings that are necessary to restore or improve the condition of an item, property, or infrastructure to a satisfactory level.

Lease Termination

The act of ending a lease agreement before its specified closing date, by either the landlord or tenant, under terms specified in the agreement.

Wet Floor

A surface where liquids have been spilled or cleaned, representing a slip hazard and commonly marked by warning signs to prevent accidents.