1/ Thompson TV and Appliance reported the following in its 2018 financial statements:

		2018
Sales	$	429,000
Cost of goods sold:
Inventory, January 1		63,000
Net purchases		334,000
Goods available for sale		397,000
Inventory, December 31		87,000
Cost of goods sold		310,000
Gross profit	$	119,000

Thompson's 2018 inventory turnover ratio is: (Round your answer to two decimal places.)

Multiple Choice

• 4.13.

• 4.93.

• 5.72.

• 3.56.

2/ On January 1, 2018, Badger Inc. adopted the dollar-value LIFO method. The inventory cost on this date was $101,100. The ending inventory, valued at year-end costs, and the relative cost index for each of the next three years is below:

Year-end	Ending inventory at year-end costs				Cost Index
2018	$	129,465				1.05
2019		147,840				1.10
2020		158,220				1.20

In determining the inventory balance should Badger report in its 12/31/2019 balance sheet:

Multiple Choice

• An additional layer of $24,210 is added to the 1/1/2019 balance.

• An additional layer of $23,210 is added to the 1/1/2019 balance.

• An additional layer of $12,210 is added to the 1/1/2019 balance.

• None of these answer choices are correct.

3/ Northwest Fur Co. started 2018 with $106,000 of merchandise inventory on hand. During 2018, $560,000 in merchandise was purchased on account with credit terms of 2/15, n/45. All discounts were taken. Purchases were all made f.o.b. shipping point. Northwest paid freight charges of $9,100. Merchandise with an invoice amount of $4,800 was returned for credit. Cost of goods sold for the year was $372,000. Northwest uses a perpetual inventory system.

Assuming Northwest uses the gross method to record purchases, what is the cost of goods available for sale?

Multiple Choice

• $659,100.

• $659,196.

• $670,300.

• $668,100.