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Gross Profit Method Presented below is information related to Aaron Rodgers Corporation for the current year. Beginning Inventory $ 600,000 Purchases 1,500,000 Total goods available
Gross Profit Method | ||||||||
Presented below is information related to Aaron Rodgers Corporation for the current year. | ||||||||
Beginning Inventory | $ 600,000 | |||||||
Purchases | 1,500,000 | |||||||
Total goods available for sale | $ 2,100,000 | |||||||
Sales revenue | 2,500,000 | |||||||
Compute the ending inventory, assuming that | ||||||||
a) gross profit is 45% of sales | ||||||||
b) gross profit is 60% of cost | ||||||||
c) gross profit is 35% of sales | ||||||||
d) gross profit is 25% of cost | ||||||||
I'm having a really hard time understanding this. I clearly do not understand what the book is telling me versus what the question is asking. Any help would be appreciated.
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