1. Blossom Co. uses the conventional retail inventory method. The following information is available for the current year.

Cost Retail Beginning inventory $ 299000 $475000

Purchases 1050000 1530000

Freight-in 13500 Employee discounts 6700 Net markups 47000 Net markdowns 67000 Sales revenue 1430000

The ending inventory at retail should be

a.$548300

b. $615300.

c. $581800

d.. $568200.

2. Sunland Corporation had the following amounts, all at retail:

Beginning inventory	$ 3000		Purchases	$139000
Purchase returns	5400		Net markups	15000
Abnormal shortage	3400		Net markdowns	2200
Sales	71000		Sales returns	1500
Employee discounts	1300		Normal shortage	2300

What is Sunland's ending inventory at retail?

a

$76300.

b

$72900.

c

$74200.

d

$75500.

3.Given below are the present value factors for $1.00 discounted at 7% for one to five periods. Interest is compounded annually at 7%.

	Periods	Present Value of $1 Discounted at 7% per Period
	1	0.935
	2	0.873
	3	0.816
	4	0.763
	5	0.713

What amount should an individual have in a bank account today before withdrawal if $7000 is needed each year for four years with the first withdrawal to be made today and each subsequent withdrawal at one-year intervals? (The balance in the bank account should be zero after the fourth withdrawal.)

a	($7000 0.935) + ($7000 0.873) + ($7000 0.816) + ($7000 0.763)

b	$7000 + ($7000 0.935) + ($7000 0.873) + ($7000 0.816)

c	$7000 0.935 4

d	$7000 0.763 4