The Following Information Can Be Found in Manufacturer Company's Financial

question 56

Multiple Choice

The following information can be found in Manufacturer Company's financial statements. $\begin{array}{llll}&\underline{2006}&\underline{2005}\\\text { COGS } & \$ 2,500,000 & \$ 2,000,000 \\\text { Inventory } & \$ 180,000 & \$ 140,000 \\\text { Net income } & \$ 125,000 & \$ 100,000 \\\text { Retained earnings } & \$ 500,000 & \$ 400,000 \\\text { LIFO reserve } & \$ 40,000 & \$ 30,000\\\text { Tax rate }&40\%&40\%\end{array}$

-If Manufacturer used FIFO, its retained earnings as of the end of fiscal 2006 would be:

• A)$540,000.
• B)$440,000.
• C)$524,000.
• D)$506,000.

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Definitions:

Survival Value

The degree to which a behavior or trait contributes to an organism's likelihood of survival and reproductive success.

Learned Association

Learned association refers to the process by which an individual learns to connect two stimuli together or a behavior and its consequence, often fundamental for learning habits and behavior conditioning.

Operant Conditioning

A learning strategy that enhances or diminishes behavior through the use of positive or negative feedback.

Resulting Events

Outcomes or occurrences that follow from specific actions or conditions.