The Following Information Is Available for the Neptune Company for the Three

question 21

Multiple Choice

The following information is available for the Neptune Company for the three months ended March 31 of this year:

The gross margin was estimated to be 25 percent of sales. What is the estimated inventory balance at March 31?

• A) $350,000
• B) $450,000
• C) $562,500
• D) $600,000

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Definitions:

Capacity

The highest limit something can hold or generate, or the capability to execute, grasp, or soak up something.

Memory

The mental process enabling us to record, preserve, and recall past information.

Learning

The acquisition of knowledge or skills through experience, study, or by being taught.

Selective Looking

Focusing visual attention on selective aspects of the environment while ignoring others, a form of selective attention.