Final Revision For Accounting Exam - 2
Final Revision For Accounting Exam - 2
Multiple Choice
1. Financial accounting focuses on the specific needs of decision makers external to the
organization.Which of the following would not be an external user?
a. Stockholders
b. Internal Revenue Service
c. Vice President—Marketing
d. Banks
a. assets.
b. liabilities.
c. net assets.
d. net liabilities.
a. nonprofit.
b. partnership.
c. corporation.
d. governmental entity.
Module 2 Quiz
Multiple Choice
1. A fiscal year
3. Which of the following help(s) determine when a sale should be included in the income
statement?
a. Recognition principle related to sales تستحق خالص االيراد وهكتب في التقرير عندي اني
قدمت الخدمة ولو حتى ما اخدتش فلوس
b. Cost recovery principle
c. Matching principle -related to Expenses اد ايه، هشوف انا استخدمت اد ايه من المصروفات دي
اد ايه اهالك عن الفترة دي، ايجار
d. Both a and c لو كان السؤال بيتكلم عن قائمة الدخل كلها ( ايراد ومصروفات ) يبقى نختار االتنين
4. The recording of expenses in the same time period as the related revenues is called
a. matching.
b. recognition.
c. allocation.
d. accuracy.
5. Given the following information at the end of the year, what was the balance in retained
earnings atthe beginning of the year?
a. $25,000
b. $35,000
c. $45,000
d. $80,000
7. Given the following information at the end of the year, how much was net income for the year?
a. $(5,000)
b. $15,000
c. $35,000
d. $40,000
a. earnings-per-share ratio.
b. dividend-yield ratio.
c. price-earnings ratio.
d. dividend-payment ratio.
10. The only financial ratio required to be a part of the financial statements is
a. price-earnings.
b. earnings per share.
c. dividend-yield.
d. dividend-payout.
Module 3 Quiz
Multiple Choice
1. The general ledger
2. Which of the following is a group of accounts that all normally have a debit balance?
a. to increase.
b. to decrease.
c. the left side of an account.
d. the right side of an account.
a. journal.
b. ledger.
c. chart of accounts.
d. trial balance
9. When the financial statements are completed, the Income Summary account is found on
whichfinancial statement?
a. Balance sheet
b. Income statement
c. Statement of cash flows
d. None of the above
10. If the company ends the year with a net income, the balance in the Income Summary
accountimmediately preceding its closing will have a
a. debit balance.
b. credit balance (usually).
c. both a and b
d. credit balance (always).
11. If the bookkeeper (in 20X2) expenses the entire cost of a truck that normally would be used for
threeyears, then
a. net income will be understated for 20X2 and overstated for the years 20X3 and
20X4.
b. total assets will not equal liabilities plus owners’ equity.
c. net income will be overstated for 20X2 and understated for the years 20X3 and 0X4.
d. assets will be overstated for 20X2.
12. If the bookkeeper fails to make a revenue entry for 20X2,
Module 4 Quiz
Multiple Choice
Implicit explicit
1. Which of the following is an example of an implicit transaction? دي حاجة
دي ضمن
بكتشفها مع الحاجات اللي
a. Payment of one year’s rent in advance الوقت لما
b. Payment of dividends to stockholders اتأثر بسببها
ملهاش، يعدي الكاش
c. Recording monthly depreciation on equipment ، دعوة بالكاش
d. Expiration of prepaid rent. Payments
ويدخل فيها
e. Both a and c Received
االهالك والـ
f. Both c and d Expirations
3. A company recorded cash purchases of supplies as a debit to what account? ومقالش انه استخدمها
Assets اول ما بشتريها بحطها في ال
a. Assets I haven`t T Account called Asset علشان، ما اخترتش دي ليه
b. Cash
c. Office Supplies Inventory
d. Office Supplies Expense when it expired لما بستخدمه او وقتها عدى
4. In November, cash was received in advance of rendering a service. The explicit transaction was
correctly recorded in November. If the service was not performed by December 31, the
adjustingentry would be
a. a debit to Unearned Revenue and a credit to Cash. No cash in adjusting
b. a debit to Unearned Revenue and a credit to Revenue. لو الخدمة تم تأديتها هناخد دي
c. a debit to Revenue and a credit to Prepaid Services.
d. a debit to Prepaid Services and a credit to Revenue.
e. both b and d
f. none of the above
5. The Wages Payable account is an example of
a. an expense.
b. an asset.
c. a liability.
d. an owners’ equity item.
6. ABC Engineering completed a survey for York, Corp., on July 30 and billed the company
onAugust 1. For ABC, this is an example of
a. an accrued expense.
b. an accrued revenue.
c. a deferred expense.
d. a deferred revenue.
7. The journal entry to record the receipt of revenue received in advance requires a
8. The journal entry to record the accrual of interest expense on a one-year note requires a credit to
a. Cash.
b. Interest Expense.
c. Interest Payable.
d. Prepaid Interest.
a. Accounts Receivable
b. Equipment
c. Goodwill
d. Accounts Payable
a. Wages Payable
b. Bonds Payable due in 2019
c. Prepaid Rent
d. Sales Taxes Payable
e. both a and d
ratio?a. 2.0
b. 4.0
c. 3.0
d. 6.0
13. Morton, Corp., has the following income statement items for the year 20X2:
Sales $ 100,000
Gross profit $ 72,000
Operating expenses $ 47,000
Net income $ 25,000
a. 5%
b. 10%
c. 25%
d. 40%
Module 5 Quiz
Multiple Choice
1. The entry to record the return of goods from a customer would include
a. debit to Sales.
b. credit to Sales.
c. debit to Sales Returns and Allowances. ( Contra Account ) عكس المبيعات فيظهر مدين
d. credit to Sales Returns and Allowances.
e. debit to Purchases Returns and Allowances.
f. credit to Purchases Returns and Allowances.
2. Joshua, Inc., offers two trade discounts for its products. A 10% discount is offered to
wholesalers, and 5% to retailers. If Joshua, Inc., sells merchandise priced at $45,000 to a
wholesaler, at what amount should the sale be recorded?
a. $49,500
b. $40,500
c. $47,250
d. $42,750
a. $20,400
b. $19,600
c. $20,000
d. $20,600
5. Brady, Inc. had credit card sales of $50,000 for the month of July. The credit card company
charges a 3% service cost for processing the sale. How much will Brady, Inc., receive when
payment is received from the credit card company?
a. $48,500
b. $50,000
c. $51,500
d. Need more information to solve
6. Melissa Company uses the specific write-off method to recognize bad debts. The entry to
writeoff an uncollectible account would be recorded by
7. Under the allowance method of accounting for bad debts, the journal entry to record the write-off
of a specific uncollectible account would include
8. SAY Co. had $900,000 of sales during 20X2, $400,000 of which were on credit. The balances in
its Accounts Receivable and its Allowance for Uncollectible Accounts on December 31, 20X2
were $80,000 and $20,000, respectively. Past experience indicates that 5% of all credit sales
willnot be collected. What is the correct amount for SAY Co. to debit to Bad Debt Expense?
10. JKY, Inc., had credit sales in the current year of $5,000,000. JKY’s beginning and ending
accounts receivable for the current year were $800,000 and $1,200,000. What was JKY’s
accounts receivable turnover for the year?
11. If JKY, Inc.’s accounts receivable turnover for the current year was 10.0, what was their average
collection period?
a. 52 days
= 365 / 10 = 36.5
b. 50 days About 37 Days
c. 45 days
d. 37 days
13. Which of the following is true regarding the control of cash in a business? We need to Maker
and checker
a. The employee who authorizes a check should not sign the check.
b. The employee who authorizes a check should sign the check if under $100.
c. The employees who handle the cash should also be responsible for bank
reconciliations.
d. Prenumbered checks should never be used. االرقام بتكون مترتبة ومعمولة
14. The methods and procedures for authorizing transactions, safeguarding assets, and ensuring the
accuracy of the financial records are controls.
a. financial
Internal Control divided to
b. internal
c. managerial 1- Internal Accounting Control ( Financing and account )
2- Internal Administrative control ( related to employees in the company ).
d. administrative 3- Internal Managerial control.
e. accounting 4-
f. d and e
g. b and e
15. There are numerous general objectives for internal accounting controls. Which objectives relate
to establishing the system of accountability and are aimed at preventing errors and irregularities?
a. Valuation, authorization, recording
b. Reconciliation, valuation, recording
c. Safeguarding, authorization, recording
d. Safeguarding, valuation, recording
e. None of the above
16. What is the most important element of a successful internal control system?
a. Publication of the internal controls
b. Performing a cost-benefit analysis before each internal control is put into place
c. Personnel
d. Purchasing adequate insurance coverage
The quality of receivables refers to:
A. The creditworthiness of sellers.
B. The speed of collection.
C. The likelihood of collection without loss.
D. Sales turnover.
E. The interest rate.
is:
A. Option A
B. Option B May3
C. Option C write off
D. Option D Dr Allowance 3,000
Cr A/R 3,000
الراجل ضميره صحي وجه يسدد
Dr A/R 3,000
Cr Allowance 3,000
( Reverse )
Dr Cash
Cr A/R 3,000
3) A company uses the percent of sales method to determine its bad debts expense. At the end of the
current year, the company's unadjusted trial balance reported the following selected amounts:
All sales are made on credit. Based on past experience, the company estimates 0.6% of credit sales
to be uncollectible. What amount should be debited to Bad Debts Expense when the year-end
adjusting entry is prepared?
A. $1,275 بعمل هنا
B. $1,775 % 0.6 مديهاني اللي النسبة في 800000 المبيعات بضرب
C. $4,500 4800 =
D. $4,800
A/R & Allowance وبتجاهل تماما
E. $5,500
4) Electron borrowed $75,000 cash from TechCom by signing a promissory note. TechCom's entry to
record the transaction should include a:
A. Debit to Notes Receivable for $75,000.
B. Debit to Accounts Receivable for $75,000.
C. Credit to Notes Receivable for $75,000.
D. Debit Notes Payable for $75,000.
E. Credit to Sales for $75,000.
5) Teller purchased merchandise from TechCom on October 17 of the current year and TechCom
accepted Teller's $4,800, 90-day, 10% note. What entry should TechCom make on December 31, to
record the accrued interest on the note?
A. Debit Cash $20; credit Notes Receivable $20.
B. Debit Cash $100; credit Notes Receivable $100.
C. Debit Interest Receivable $20; credit Interest Revenue $20.
D. Debit Interest Receivable $100; credit Interest Revenue $100.
E. Debit Cash $120; credit Interest Revenue $100; credit Interest Receivable $20.
10/17 - 12/31 هحسب
كام يوم
يوم75
4800 x 10% x 75 Days/365 days = 100$
4. Which of the following would not be represented in the financing section of the statement of
cashflows?
a. Long-term bonds payable issued
b. Issuing of equity securities
c. Purchase of treasury stock
d. Make a loan to a supplier the company lended other company or supplier
5. The collection of a loan repayment from a stockholder would appear in which section of the
statement of cash flows?
a. Operating
b. Investing the company collected Loan repayement
c. Financing
d. Other
6. The easiest way to identify operating cash flows under the direct method is to
a. examine the cash column of the balance sheet equation.
b. examine the income statement.
c. examine changes in current asset and current liability accounts.
d. adjust net income for non-cash items.
7. A sale of long-lived assets in exchange for cash would appear in which section of the statement
ofcash flows?
a. Operating
b. Investing
c. Financing
d. Other
8. The records of Williams Corporation showed a net loss of $10,000; depreciation expense of
$15,000; and an increase in accounts receivable of $6,000. The amount of cash provided by (usedin)
operating activities, assuming no other transactions, is
a. $(4,000)
b. $(1,000)
c. $ 5,000
d. $11,000
9. Which of the following items would be added to net income to compute cash provided by
(usedin) operations under the indirect method?
10. Under the indirect method of preparing statement of cash flows, all of the following would
beadded to net income to arrive at cash flow from the operations, except
a. depreciation expense.
b. increase in accounts payable. ومعناها انها بالـadded راجعة علىexcept
c. loss on the sale of equipment. included ولو عاوز يقول انها، positive
d. increase in accounts receivable. هيقول كده
11. When preparing a statement of cash flows, the difference between the direct and indirect
methodoccurs in which of the following section(s)?
a. Financing activities
b. Operating activities
c. Investing activities
d. All of the above
12. Which statements would be used to analyze a company’s cash flow from the sale of an
operatingasset?
13. The beginning balance in Accounts Receivable was $15,000; cash collections during the
periodwere $200,000; and the ending balance in Accounts Receivable was $7,500. The
revenue from sales during the period was
a. $192,500 Sales ??? ( 192,500 )
b. $200,000 + decrease in A/R 7,500
c. $207,500 ……………………….
d. $215,000 Cash collected 200,000
14. The Wages Payable account had a beginning balance of $5,000 and an ending balance of $7,000.
Wage expense for the period was $79,000. How much cash was paid for wages during the period?
15. a. $77,000
16. b. $79,000 Wages expense -79,000
17. c. $81,000 Wages payable increased + 2,000
18. d. $86,000 ……………………….
Wages paid - 77,000
Module 7 Quiz
Multiple Choice
1. Inventory becomes part of cost of goods sold when a company
2. Accountants refer to the difference between sales and cost of goods sold as the
a. net sales.
b. holding gain.
c. goods available for sale.
d. gross profit.
3. The correct entry under the perpetual system for recording an inventory purchase includes
a. debit to Purchases.
b. debit to Merchandise Inventory.
c. debit to Accounts Payable.
d. credit to Purchases.
5. Under a perpetual inventory system, the purchase of goods for resale would result in
a. a debit to the Accounts Receivable account.
b. a debit to the Purchase account.
c. a debit to the Cost of Goods Sold account.
d. a debit to the Inventory account.
8. ABC, Inc., projects sales for the year 20X1 to be $60,000,000. For the past five years ABC’s
gross profit margin has averaged 65%. What amount should ABC, Inc., project for gross profit
for 20X2?
Gross Profit = Sales x Gorss Profit Margin
a. $39,000,000 = $60,000,000 x 65% = $39,000,000
b. $35,000,000
c. $21,000,000
d. $10,000,000
9. Merkey, Inc.’s cost of goods sold for 20X2 was $65,000. They had beginning and ending
inventory of $12,000 and $14,000, respectively. What was Merkey, Inc.’s inventory turnover for
20X2?
2. Which of the following costs would be included in the cost of the machinery?
a. Invoice price
b. Installation costs
c. Testing of machinery prior to its intended use
d. b and c
e. a, b, and c
4. For financial reporting purposes, the most frequently used depreciation method is
a. double-declining balance.
b. straight-line.
c. modified accelerated cost recovery system.
d. unit depreciation.
5. Cross Co. purchased a machine at the beginning of the year that cost $30,000 and has a $3,000
salvage value and a 6-year life. The depreciation expense for the first year under the straight-
linemethod should be
8. The depreciation method that uses the residual value at the end of the depreciation process is
a. double-declining balance.
b. unit depreciation.
c. straight-line.
d. a and b
9. On January 1, 20X2, The MaLady Co. has machinery on the books that originally cost
$100,000.During 20X2, the following expenditures were made:
$105,000
b. $109,000
c. $111,000 $100,000 + $20,000 -= $120,000
d. $120,000
10. Cue Co. purchased a new truck in 20X0 for $27,000. On January 1, 20X3, when accumulated
depreciation was $20,000, the truck was sold for $7,000 cash. What amount of gain or loss
should Cue report for this sale?
a. $ -0-
b. $ 7,000
c. $10,000
d. $14,000
a. intangible assets.
b. plant assets.
c. wasting assets.
d. none of the above
13. The term used to refer to the expiration or exhaustion of a natural resource asset is
a. amortization.
b. depreciation.
c. depletion.
d. termination.
Module 9 Quiz
Multiple Choice
1. Current liabilities are debts that are expected to be satisfied within
a. 1 year.
b. the normal operating cycle.
c. 1 year or the normal operating cycle, whichever is shorter.
d. 1 year or the normal operating cycle, whichever is longer. ممكن تكون دورة التشغيل نفسها
بتاخد اكبر من سنة وان البضاعة ممكن تقعد عنده اكتر من سنة
2. On January 1, 20X2, Hoffman Company, a calendar year company, issued $75,000 of notes
payable, of which $15,000 is due on January 1 for each of the next 5 years. The proper
balancesheet presentation on December 31, 20X2, is
3. The Tom Root Corporation guarantees its product against defects for 1 year. In what year
shouldthe corporation report the warranty expense?
4. Long-term liabilities are reported on a company’s balance sheet at the present value of all future
payments using
a. the current market interest rate.
b. the interest rate provided by the government.
c. the market interest rate at the time the liability was incurred.
d. the prime interest rate.
5. Which of the following bonds is secured with a general claim against the company’s total assets?
a. Debenture it’s for General asset
b. Subordinated debenture
c. Mortgage it’s for specific asset
d. Callable
6. On January 1, 20X2, Andrew Company issued $100,000 of 10% bonds at par. Andrew pays
interest semiannually on June 30 and December 30. To record the payment at maturity,
AndrewCompany
a. credits Bonds Payable for $100,000.
b. debits Cash for $100,000.
c. debits Bonds Payable for $100,000. And credit Cash
d. none of the above
semiannually interest 6 الفايدة كل
Issuanceهصدر Paymentهسدد
شهور
$100,000 Cash $100,000 Bonds Payable Dr Interest $5,000
$100,000 Bonds Payable sh $100,000 Cash Cr Cash $5,000
7. The amortization of a bond discount will result in reporting an amount of interest expense for
aninterest period that
a. equals the amount of cash to be paid for interest for the period.
b. exceeds the amount of cash to be paid for interest for the period.
c. is less than the amount of cash to be paid for interest for the period.
d. has no relationship with the amount of cash to be paid for interest for the period.
8. If bonds are issued at a premium, the net long-term liability Bonds Payable reported on
the balance sheet
9. A lease must be accounted for as a capital lease if it meets any one of four conditions. Which
ofthe following is not one of the conditions?
One common example is the interest received on municipal bonds. If a company receives tax-free interest, it should include
that income on its financial statements. However, it does not have to include that interest in its tax filing or pay taxes on it.
12. On May 1, 20X2, Pioneer, Inc.’s board of directors voted to restructure the company by closing
the seed division. The board estimated the process would be completed by August 31, 20X3.
The cost of closing the seed division facilities was anticipated to be $300,000 and there would
beadditional costs of $100,000 associated with terminating employees. Which of the following
is true as to the amount of the restructuring charge and when it would be recognized?
a. A loss of $400,000 on May 1, 20X2
b. A loss of $400,000 on December 31, 20X2
c. A loss of $300,000 on August 31, 20X3
d. A loss of $400,000 on December 31, 20X3
13. Drum, Inc., had the following balances at December 31, 20X2:
a. 3:1
b. 4:1 Debt-to-equity ratio =Total liabilities/ Total shareholders’ equity
c. 5:1
d. 10:1
14. Drum, Inc., had the following balances at December 31, 20X2:
a. the sum of a series of payments at equal time intervals that are unequal in amount.
b. equal amounts of annual net income.
c. the compound interest earned on a single cash flow.
d. a number of cash flows occurring one interest period apart that are equal in amount.
Module 10 Quiz
Multiple Choice
1. The basic rights usually attached to shares of common stock include
3. Which of the following is the appropriate journal entry on the dividend date of record?
a. Retained Earnings
Cash
b. Paid-In Capital in Excess of Par Value
Dividends Payable
c. Retained Income
Dividends Payable
d. None of the above no entry in date of record
a. Voting rights
b. Dividend preferences
c. Liquidation preferences
d. Conversion privileges
5. Which of the following is not a possible feature of preferred stock?
a.
b. Convertible
c. Participating
d. Callable
e. All of the above are possible features of preferred stock.
6. Which of the following characteristics of bonds and preferred stock are similar?
a. the time period during which the related stock may be purchased.
b. the market price of the related stock at the time the stock may be purchased.
c. the number of shares that may be purchased.
d. the option price per share of the related stock.
a. increase the total amount of paid-in capital by the par value of the shares
to beissued.
b. increase the total amount of paid-in capital by the market value of the shares to be
issued.
c. increase the total amount of retained earnings by the par value of the shares to be
issued.
d. increase the total amount of retained earnings by the market value of the shares to
be issued.
10. The declaration of a 10% stock dividend on 100,000 outstanding shares with a par value of $1
and a market value of $20 would include a debit to Retained Earnings of
a. $ - 0 -.
b. $27,000.
c. $200,000.
d. $210,000.
13. Bush Corporation reacquired 2,000 shares of its own $10 par value common stock for $30 per share. If
it reissues all the treasury stock for $35 per share, the entry to record the reissue would be
a. Cash 70,000
Treasury stock 60,000
Additional paid-in Capital 10,000
b. Cash 70,000
Common Stock 70,000
c. Cash 70,000
Common Stock 10,000
Paid-In Capital in Excess of Par 60,000
d. Cash 70,000
Treasury Stock 70,000
14. Groucho Co. issued 750,000 shares of $10 par value common stock in exchange for a building
valued at $800,000. The stock does not trade in an active market. The entry for this transaction
would include a
15. We compute the book value per share of stock with only common shares outstanding as follows:
a. Divide the amount of retained earnings as of a balance sheet date by the number of
common shares issued as of that date.
b. Divide the amount of stockholders’ equity as of a balance sheet date by the
numberof common shares outstanding as of that date.
c. Divide the amount of stockholders’ equity as of a balance sheet date by the number
of common shares issued as of that date.
d. Divide the amount of stockholders’ equity as of a balance sheet date by the number
of common shares authorized as of that date
16. Journey Corp. reported net income of $50,000 for 20X2. Journey paid preferred dividends of
$20,000 and common dividends of $15,000 during 20X2. Average common stockholders’ equity
was $400,000 for the year. What was Journey’s rate of return on common equity?
a. 3.75%
b. 7.50%
c. 8.75%
d. 12.50%
Module 12 Quiz
Multiple Choice
1. Ankeny Corporation purchased 2,000 shares of ABC’s common stock for $33 per share on
February 28, 20X2. Ankeny intends to hold this stock as available-for-sale. At the end of 20X2
ABC’s market price was $35 per share. The $4,000 difference in value would be reported by
Ankeny as
2. On January 1, Jones pays $4,800 for a $6,000, 8% bond that pays interest on December 31 and
June 31. Jones plans on selling the bond within one operating cycle. What entry is needed for the
bond purchase?
3. Under the market method of accounting for intercorporate investments in common stock,
4. Which method is required for accounting for investment in common stock of 20% to 50%?
a. Lower-of-cost-or-market method
b. Equity method
c. Consolidation method
d. All of the above are acceptable.
5. Under the equity method of accounting for intercorporate investments in common stock,
a. the investor company debits the Investment in the Company account for its
share ofinvestee net income.
b. the investor company credits the Investment in the Company account for its share
of investee net income.
c. dividends received from the investee are debited to Investment in the Company.
d. dividends received from the investee are credited to Dividends Revenue.
6. When a corporation owns more than 50% of the voting stock of another corporation,
7. Generally, work sheet procedures to prepare consolidated financial statements include which of
the following steps?
8. P Company purchased 100% of the voting stock of S Company for $300,000 in cash. Assuming P
Company purchased S Company at its book value, one part of the work sheet elimination entryat
acquisition date is to
9. Noncontrolling interests
a. represent ownership of stockholders who own less than 60% of the outstanding stock in a
consolidated company.
b. represent the rights of non-majority shareholders to assets and earnings of a consolidated
company.
c. represent ownership of those stockholders who own between 20 and 50%.
d. represent ownership of those stockholders who own less than 20% of the stock in a
consolidated corporation.
A. All ledger accounts are closed to start the new accounting period.
B. All temporary accounts are closed but not the permanent accounts.
C. All real accounts are closed but not the nominal accounts.
D. All permanent accounts are closed but not the nominal accounts.
E. All balance sheet accounts are closed.
A. Store fixtures.
B. Computers.
C. Land.
D. Buildings.
E. All of these are depreciated.
4) Cash flows associated with the purchase and sale of fixed assets are called
A. operating flows.
B. investment flows.
C. financing flows.
D. none of the above.
5) Cash $20,500; A/R, $7,250; Supplies, $650; Equipment, $12,000; Accounts Payable, $9,300. What is
the amount of owner's equity
A. $8,300
B. $13,050
C. $20,500
D. $31,100
E. $40,400
6) Peter Company paid $30,000 of its accounts payable in cash. What would be the effects of this
transaction on the accounting equation?
A. 2% cash discount if the amount is paid within 10 days, or the balance due in 30 days.
B. 10% cash discount if the amount is paid within 2 days, or the balance due in 30 days.
C. 30% discount if paid within 2 days.
D. 30% discount if paid within 10 days.
E. 2% discount if paid within 30 days.
10) Herald Co had sales of $135,000, sales discounts of $2,000, and sales returns of $3,200, COGS of
90,000. Herald Co's net sales is:
A. $39,800.
B. $129,800.
C. $133,000.
D. $135,000.
E. $140,200.