Proboscis Ltd A)$386,000
B)$414,000
C)$442,000
D)$500,000

Proboscis Ltd.is for sale.The company has been successful for many years, and its earnings for the past five years, in reverse order beginning with the current year are $500,000, $450,000, $410,000, $390,000, and $320,000.What is the weighted average earnings for Proboscis? $\begin{array}{|c|c|c|}\hline \$ 500,000 & 5 & \$ 2,500,000 \\\hline \$ 450,000 & 4 & \$ 1,800,000 \\\hline \$ 410,000 & 3 & \$ 1,230,000 \\\hline \$ 390,000 & 2 & \$ 780,000 \\\hline \$ 320,000 & 1 & \$ 320,000 \\\hline & 15 & \$ 6,630,000 \\\hline&&15\\\hline \text { Weighted average earnings: }&&\$442,000\\\hline\end{array}$

A) $386,000
B) $414,000
C) $442,000
D) $500,000

Correct Answer:

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