1) JRC Inc has purchases of $300,000, a starting inventory of $50,000 and the cost of goods sold is $175,000, what is the dollar amount of its ending inventory?

a) $175,000

b) $240,000

c) $265,000

d) $350,000

e) $415,000

2) Apple has been order products for their new up-and-coming iphone. They are planning a limited sale and thus have a demand of 1,000,000 units. Each order costs Apples $50 to place and the holding costs per unit is $25. What is the optimal number of order that Apple should place (rounded up to whole number)?

a) 500

b) 351

c) 306

d) 277

e) 224

3) What is the inventory turnover ratio and quick ratio?

Balance Sheet:

Assets

cash 60

A/R 100

Inventory 80

Fixed Asset 100

(Accum Depr) -25

Total 315

Liabilities

AP 40

Accruals 10

Notes Pay 15

L-T Debt 150

Total Debt 215

Equity 100

Total Liab & Equity 315

Income Statement:

sales $700

COGS $315

Gross Profit $385

Operating Expenses 125

Depreciation 30

EBIT $230

Interest 20

Taxes 75

Net Profit $135

Dividends 30

Answer rating: 100% (QA)

1 JRC Inc has purchases of 300000 a starting inventory of 50000 and the cost of goods sold is 175000 ... View the full answer