Question
On December 31, a company needed to estimate its ending inventory to prepare its annual financial statements. The following information is currently available: Inventory as
On December 31, a company needed to estimate its ending inventory to prepare its annual financial statements. The following information is currently available:
Inventory as of January 1: $120,500
Net sales for the year: $400,000
Net purchases for the year: $270,500
This company typically achieves a gross profit ratio of 15%. Ending Inventory under the gross profit method would be:
A. $102,425.
B. $10,425.
C. $9,000.
D. $51,000.
E. $51,425.
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International financial management
Authors: Jeff Madura
9th Edition
978-0324593495, 324568207, 324568193, 032459349X, 9780324568202, 9780324568196, 978-0324593471
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