Inventory at the beginning of the year cost $14,400. During the year, the company purchased (on account) inventory costing $89,000. Inventory that had cost $85,000 was sold on account for $99,000. At the end of the year, inventory was counted and its cost was determined to be $18,400.a. Calculate the cost of goods sold. b. What was the dollar amount of Gross Profit?

Which of the following actions would be most likely to reduce potential conflicts of interest between stockholders and managers? a. change the corporation's formal documents to make it easier for outside investors to acquire a controlling interest in the firm through a hostile takeover. b. eliminate a requirement that members of the board of directors must hold a high percentage of their personal wealth in the firm's stock. c. for a firm that compensates managers with stock options, reduce the time before options are vested, i.e., the time before options can be exercised and the shares that are received can be sold. d. pay managers large cash salaries and give them no stock options. e. beef up the restrictive covenants in the firm's debt agreements.