Hello,

I am having difficulties with this exercise.

Uncle Butch's Hunting Supply Shop reports the following information related to inventory:

CostRetail

Beginning inventory$35,000$92,000

Purchases75,000200,000

Net additional markups15,000Net markdowns(22,000)

Goods available for sale$110,000. $285,000

Sales(178,000)

Ending inventory at retail $107,000

I calculated Cost to retail ratio but still gives me a wrong answer $110,000/$285000=0.386