Given the Following Information, Calculate the Firm's COST OF SALES

question 120

Multiple Choice

Given the following information, calculate the firm's COST OF SALES.

• A) $180,000
• B) $285,000
• C) $190,000
• D) $120,000
• E) Cannot be determined without knowing the firm's net sales.

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Definitions:

Common Shares

Equity securities that represent ownership in a corporation, giving holders voting rights and a share of the company's profits through dividends.

Preferred Shares

Preferred shares are a class of ownership in a corporation that has a higher claim on assets and earnings than common shares, typically entitling shareholders to fixed dividends ahead of common stockholders.

Cost of Equity

The anticipated reward that a corporation offers to its stockholders in exchange for the risk they take by investing their capital.

Stock Sells

The act of disposing of shares of stock or equity in a corporation, typically in exchange for cash or other compensation.