In 20B,Landings,Inc

question 71

Multiple Choice

In 20B,Landings,Inc.provided the following items in their footnotes.Their cost of goods available for sale was $4.5 billion under FIFO costing and their ending inventory value under FIFO costing was $2.1 billion.Their purchases were $4.1 billion.What was their opening inventory?

• A)$0.4 billion
• B)$2.0 billion
• C)$2.4 billion
• D)$6.2 billion

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Definitions:

Short-Term Loan

A type of loan that is scheduled to be repaid in less than a year.

Equity Financing

The sale of common stock or the use of retained earnings to provide long-term financing.

Common Stock

A type of equity security that represents ownership in a corporation, with rights to vote on corporate matters and receive dividends.

Effective Rate

A measure of the actual interest rate on a loan or investment, taking into account the compounding of interest over a given period of time.