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On January 31, a company needed to estimate its ending inventory to prepare its monthly financial statements. The following information is currently available: Inventory as

On January 31, a company needed to estimate its ending inventory to prepare its monthly financial statements. The following information is currently available:

Inventory as of January 1: $120,500 Net sales for January: $400,000 Net purchases for January: $270,500

This company typically achieves a gross profit ratio of 15%. Ending Inventory under the gross profit method would be:

A. 51000 B.9000 C.102425 D.10425 E.51425

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