Under the retail inventory method:
A. A company measures inventory on its balance sheet by converting retail prices to cost.
B. A company measures inventory on its balance sheet at current selling prices.
C. A company measures inventory on its balance sheet on a LIFO basis.
D. None of the above is correct.
2. Lou Lewis borrows $10,000 to be repaid over 10 years at 9%. Repayment of principal in the first year is ______. (HINT: Use PMT function in excel and subtract 1st year interest to find principal paid in first year)
a. $742
b. $1,558
c. $658
d. $885