1)Nu Company reported the following pretax data for its first year of operations.

Net sales	2,970
Cost of goods available for sale	2,400
Operating expenses	740
Effective tax rate	40%
Ending inventories:
If LIFO is elected	1,010
If FIFO is elected	1,230

What is Nu's net income if it elects FIFO?

$1,060.

$636.

$504.

$1,800.

2)Northwest Fur Co. started 2016 with $94,000 of merchandise inventory on hand. During 2016, $420,000 in merchandise was purchased on account with credit terms of 4/15, n/45. All discounts were taken. Purchases were all made f.o.b. shipping point. Northwest paid freight charges of $8,400. Merchandise with an invoice amount of $3,500 was returned for credit. Cost of goods sold for the year was $380,000. Northwest uses a perpetual inventory system. What is ending inventory assuming Northwest uses the gross method to record purchases?

$122,180.

$142,400.

$138,900.

$122,240.

3)Cinnamon Buns Co. (CBC) started 2016 with $52,800 of merchandise on hand. During 2016, $289,000 in merchandise was purchased on account with credit terms of 4/10 n/30. All discounts were taken. Purchases were all made f.o.b. shipping point. CBC paid freight charges of $10,500. Merchandise with an invoice amount of $3,900 was returned for credit. Cost of goods sold for the year was $313,000. CBC uses a perpetual inventory system. Assuming CBC uses the gross method to record purchases, ending inventory would be:

$23,840.

$35,400.

$13,496.

$23,996.

4)Fulbright Corp. uses the periodic inventory system. During its first year of operations, Fulbright made the following purchases (listed in chronological order of acquisition):

41 units at $108

71 units at $77

171 units at $60

Sales for the year totaled 267 units, leaving 16 units on hand at the end of the year. Ending inventory using the FIFO method is:

$960.

$1,010.

$1,140.

$1,728.

5)Thompson TV and Appliance reported the following in its 2016 financial statements:

	2016
Sales	$432,000
Cost of goods sold:
Inventory, January 1	71,000
Net purchases	323,000
Goods available for sale	394,000
Inventory, December 31	101,000
Cost of goods sold	293,000
Gross profit	$139,000

Thompson's 2016 inventory turnover ratio is (Round your answer to two decimal places):

3.41.

4.28

2.90.

5.02.

6)Nu Company reported the following pretax data for its first year of operations.

Net sales	2,970
Cost of goods available for sale	2,310
Operating expenses	800
Effective tax rate	30%
Ending inventories:
If LIFO is elected	890
If FIFO is elected	1,170

What is Nu's gross profit ratio if it elects LIFO? (Round your answer to the nearest whole percentage.)

62%.

67%.

24%.

52%.

7)Anthony Thomas Candies (ATC) reported the following financial data for 2016 and 2015:

	2016	2015
Sales	$310,000	$292,000
Sales returns and allowances	7,900	4,200
Net sales	$302,100	$287,800
Cost of goods sold:
Inventory, January 1	44,000	27,000
Net purchases	149,000	135,000
Goods available for sale	193,000	162,000
Inventory, December 31	74,000	44,000
Cost of goods sold	119,000	118,000
Gross profit	$183,100	$169,800

The average days inventory for ATC for 2016 is (Round intermediate calculations to two decimal places. Round your final answer to a whole number):

rev: 11_19_2015_QC_CS-33523

Less than 100 days.

277 days.

241 days.

181 days.