Culver Clocks, Inc

question 44

Short Answer

Culver Clocks, Inc. uses the LIFO method of valuing inventory. Over the past year, it purchased clocks as follows: January 1: 100 at $38.00; March 1: 250 at $36.00; July 1: 175 at $39.00; October 1: 400 at $38.50; December 1: 300 at $39.50. At year-end on December 31, Culver Clocks, Inc. had a year-end inventory of 300 clocks. Compute the December 31, inventory value.

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Definitions:

Accounts Receivable

Money owed to a company by customers for products or services that have been delivered or used but not yet paid for.

Income Tax Payable

This represents the amount of income tax that a company owes to the government but has not yet paid.

Sales

The transactions involving the exchange of goods or services for money, reflecting the primary revenue activity of a business.

Free Cash Flow

The amount of cash generated by a business after accounting for operational expenses and capital expenditures, available for distribution or reinvestment.