Question #$3$

Anthony Thomas Candies $($ATC$)$ reported the following financial data for $2021$ and $2020$:

a$)$ Calculate ATC's gross profit ratio for $2021$

b$)$ Calculate ATC's Inventory Turnover ratio for $2021$

Question #$4$

Montana Co$.$ has determined its year$-$end inventory on a FIFO basis to be $$600,000.$ Information

$pertaining to that inventory is as follows:

Selling price

Costs to sell

Replacement cost

$$620,000$

$30,000$

$520,000$

Based on the Lower of Cost or Net Realizable Value, what should be the reported value of Montana's

inventory?