Edited:

Urban Kicks, a shoe retailer, has historically maintained a profit margin of 30% of the selling price, but due to market pressures, had to drop that to 20% for the month of March. What is the estimated inventory at the end of March if they had $159,000 in inventory on January 1, given the following information?

• A :

  $825,000

• B :

  $116,000

• C :

  $196,500

• D :

  $142,300

February March Inventory on the 1st Purchases Sales Revenue January 159,000 400,000 300,000 375,000 520,000 400,000 805,000