High School

Marigold Corp. has 8000 units in beginning finished goods. The sales budget shows expected sales to be 37000 units. If the production budget shows that 43000 units are required for production, what was the desired ending finished goods?

a. 8000. b. 29000. c. 2000. d. 14000.

Answer :

The correct answer is d. 14000.

The desired ending finished goods for Marigold Corp. is 14,000 units.

How many units are the desired ending finished goods?

To calculate the desired ending finished goods, we need to consider the beginning finished goods, expected sales, and the units required for production.

Beginning finished goods = 8000 units

Expected sales = 37000 units

Units required for production = 43000 units

Desired ending finished goods = Beginning finished goods + Units required for production - Expected sales

Desired ending finished goods = 8000 + 43000 - 37000

Desired ending finished goods = 8000 + 6000

Desired ending finished goods = 14000

Therefore, the desired ending finished goods is 14000 units.

The correct answer is d. 14000.

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To calculate the net cash provided by operating activities using the indirect method, we start with the net income and make adjustments for non-cash expenses and changes in working capital accounts.

Net Income: $490,000

Add: Depreciation Expense: $107,000

Less: Gain on Sale of Land: $143,000

Add: Increase in Accounts Receivable: $76,000

Add: Decrease in Inventory: $66,000

Less: Increase in Accounts Payable: $250,000

Net Cash Provided by Operating Activities = Net Income + Depreciation Expense - Gain on Sale of Land + Increase in Accounts Receivable + Decrease in Inventory - Increase in Accounts Payable

Net Cash Provided by Operating Activities = $490,000 + $107,000 - $143,000 + $76,000 + $66,000 - $250,000

Net Cash Provided by Operating Activities = $336,000

Therefore, the correct answer is b. $632,000.