1. Refer to the following information.
2010 inventory at end of year prices is $100,000 index is 1.00
2011 inventory at end of year prices is $120,000 index is 1.10
2012 inventory at end of year prices is $130,000 index is 1.15
2013 inventory at end of year prices is $110,000 index is 1.20
How much is 2013 dollar value LIFO inventory?
A. $132,000
B. $126,500
C. $111,500
D. None of the above
2. The ABC Company reported $350,000in cash and cash equivalent on their 12/31/2014 balance sheet. Which of the following would not be included in the $350,000 balance?
A. Petty Cash of $200
B. Cash of $40,000 held in bank as compensating balance
C. A $10,000 CD that matures on January 15, 2015
D. All of the above would be included in the $350,000
3. The ABC Company factored, without recourse, $40,000 of accounts receivable to the Last National Bank. The Bank charges a 10% fee and 5% for allowances for bad debts. How much cash will ABC receive?
A. $40,000
B. $32,000
C. $34,000
D. None of the above