Answer:
The correct answer is letter "A": Finished goods inventory.
Explanation:
Finished goods inventory refers to those products that have reached their maximum level of completion and are stored in the manufacturing company inventory waiting for retailers or end-consumers to demand them. Finished goods are also called <em>final goods</em>.
Answer:
The answer is attached for ease of understanding and reference.
Explanation:
Answer:
The number of RVs must be sold to attain the target profit before taxes: 130 units
Explanation:
The number of units must be sold to meet the target profit figure are calculated by using following formula:
The number of units must be sold = (Total fixed cost + Targeted profit) / Contribution margin per unit.
RV USA estimates target profit before taxes of $150,000. Unit contribution margin is $5,000 and fixed costs are $500,000.
The number of units must be sold = ($500,000 + $150,000)/$5,000 = 130 units
Answer:
(C) Collected cash for the principal balance of a note receivable
Explanation:
This is so because paying off principal balance of a note payable will definitely reduce cash asset and ultimately lead to liabilities of note payable. The cash outflow from the payoff of the note payable would be classified as a financing activity, and this way the the income statement is not affected.
