Hardy Company Is a Wholesale Electronics Distributor Given This Information, If Hardy Company's Gross Margin Is 30

question 63

Multiple Choice

Hardy Company is a wholesale electronics distributor. On December 31, 2011, it prepared the following partial income statement:
$\begin{array}{lr}\text { Grosss sales.}&\$600,400\\\text { Sales discounts}&400\\\text {Net sales }&\$600,000\\\text {Cost of goods sold: }&\\\text {Beginning inventary . }&\$200,000\\\text { Net purchases}&300,000\\\end{array}$

Given this information, if Hardy Company's gross margin is 30 percent of net sales, what is the correct ending inventory balance?

• A) $80,000
• B) $120,000
• C) $180,000
• D) $500,000

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