To the Nearest Thousand, Estimated Ending Inventory Is

question 64

Multiple Choice

To the nearest thousand, estimated ending inventory is:

• A)$55,000.
• B)$52,000.
• C)$57,000.
• D)None of the above is correct.

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Definitions:

Working Capital

A measure of a company’s liquidity; computed as current assets minus current liabilities.

Note Payable

A written agreement in which one party agrees to pay another party a definite sum of money at a future date or on demand.

Current Assets

Assets likely to be converted into cash, sold, or consumed within a year or the normal operating cycle of the business.

Profit Margin

A financial metric that measures the percentage of revenue that exceeds the cost of goods sold, indicating the profitability of a business.