Answer:
a. LIFO.
Explanation:
The LIFO method refers to an inventory method that means the item which is last purchased should be sold first during the period of time. So in this inventory method the earliest cost in the closing inventory should be recorded
Therefore the given situation, the correct option is a.
And, the other options are wrong
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Answer:
The money supply increases by $3300.
Explanation:
Money multiplier = 1/reserve ratio
= 1/0.4
= 2.5
the change in the money supply = deposit *multiplier -deposit
= $2,200*2.5 - $2,200
= $3300
Therefore, The money supply increases by $3300.
Answer:
32.03%
Explanation:
Data provided as per the question
Net operating income = $42,930
Average operating assets = $134,000
The computation of return on investment (ROI) is shown below:-
Return on investment =net operating income ÷ average operating assets
$42,930 ÷ $134,000
= 32.03%
Therefore for computing the return on investment we simply divide average operating assets by net operating income.
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