Bonds are a popular source of financing because

a.
bond interest expense is deductible for tax purposes, while dividends paid on stock are not.

b.
financial analysts tend to downgrade a company that has raised large amounts of cash by frequent issues of stock.

c.
a company having cash flow problems can postpone payment of interest to bondholders.

d.
the bondholders can always convert their bonds into stock if they choose.

e.
none of the above

Frost corporation incurred the following transactions during its first year of operations. (assume all transactions involve cash.) 1) acquired $1,900 of capital from the owners. 2) purchased $435 of direct raw materials. 3) used $290 of these direct raw materials in the production process. 4) paid production workers $490 cash. 5) paid $290 for manufacturing overhead (applied and actual overhead are the same). 6) started and completed 250 units of inventory. 7) sold 140 units at a price of $6 each. 8) paid $130 for selling and administrative expenses. the amount of raw material inventory on the balance sheet at the end of the accounting period would be: