Pardise Company Plans the Following Beginning and Ending Inventory Levels

question 98

Multiple Choice

Pardise Company plans the following beginning and ending inventory levels (in units) for July:

Two units of raw material are needed to produce each unit of finished product.


-The total cash collected during January by LaGrange Company would be:

• A) $410,000
• B) $254,000
• C) $344,000
• D) $331,500

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Definitions:

Interest Expenses

The cost incurred by an entity for borrowed funds over a period, usually expressed in monetary terms.

Corporate Tax Rate

The percentage of a corporation's profits that is paid to the government as tax, varying by country and sometimes by the size or type of business.

Enterprise Multiple

A ratio used to determine the value of a company that takes into account its debt and equity, calculated by dividing the enterprise value by EBITDA.

EBIT

Known as Earnings Before Interest and Taxes, this financial gauge calculates a firm's profitability without considering interest and income tax charges.