Presented below is information related to Waterway Company.

cost retail Beginning inventory $ 57,390 $102,500 Purchases (net) 123,320 207,100 Net markups 10,382 Net markdowns 28,742 Sales revenue 178,230

Compute the ending inventory at retail.

Ending inventory $

Compute a cost-to-retail percentage under the following conditions. (Round ratios to 2 decimal places, e.g. 78.74%)

Cost-to-retail percentage

(1) Excluding both markups and markdowns.

% (2) Excluding markups but including markdowns.

% (3) Excluding markdowns but including markups.

% (4) Including both markdowns and markups.

Which of the methods in (b) above does the following?

(1) Provides the most conservative estimate of ending inventory.

(2) Provides an approximation of lower-of-cost-or-market.

(3) Is used in the conventional retail method.

Compute ending inventory at lower-of-cost-or-market. (Round ratio to 2 decimal places, e.g. 78.74% and final answer to 0 decimal places, e.g. 6,225.)

Ending inventory $

Compute cost of goods sold based on (d). (Round answer to 0 decimal places, e.g. 6,225.)

Cost of goods sold $

Compute gross margin based on (d). (Round answer to 0 decimal places, e.g. 6,225.)

Gross margin $