Reference no: EM132490547

Question 1: Watford Inc. reported FIFO ending inventory of $120,000 and FIFO beginning inventory of $108,000 for 2018. Inventory purchases for 2018 were $154,500 and the change in the LIFO reserve from 2017 was a decrease of $425. Calculate the value of COGS LIFO for Watford in 2018.

A.$142,925
B.$142,075
C.$154,500
D.$154,125
E.$166,500

Question 2: If a bond sells for more than its face value, the market rate of interest is:

A.Higher than the coupon rate
B.Dependent on the coupon rate
C.Equal to the coupon rate
D.Lower than the coupon rate
E.Not enough information to answer

Question 3: Which of the following is not one of the reasons why net income differs from cash flows from operations?

A.Non-cash items, such as depreciation and amortization

B.Goodwill impairment

C.Gains and losses related to the sale of plant, property, and equipment

D.Repurchase of common stock

E.None of the above

Question 4: The Income Statement for Tottenham Hotspur Inc. shows Cost of Sales of $74,000, Administrative Expenses of $20,000, Rental Expenses of $12,000, Interest Revenue of $33,000, Interest Expense of $15,000, and Net Income after Taxes of $60,000. Assuming there are no other items to be considered and that the Income Taxes are 25% of Net Income before Taxes, what is sales revenue?

A.$150,000
B.$135,000
C.$170,000
D.$182,000
E.$168,000