The Following Information Is Available for the Past Month for a Retail

question 80

Multiple Choice

The following information is available for the past month for a retail store: $$\begin{array} { | l | r | } \hline \text { Sales } & \$ 87,000 \\\hline \text { Markups } & \$ 9,000 \\\hline \text { Markdowns } & \$ 9,000 \\\hline \text { Purchases (at cost) } & \$ 38,800 \\\hline \text { Purchases (at retail) } & \$ 107,000 \\\hline \text { Beginning inventory (at cost) } & \$ 30,000 \\\hline \text { Beginning inventory (at retail) } & \$ 48,186 \\\hline\end{array}$$
What is the ending inventory at cost using the conventional retail method? (Round cost-to-retail ratios to four decimal places.)

• A) $28,570
• B) $164,186
• C) $78,000
• D) $68,186

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Definitions:

Independent Events

Two or more events are independent if the occurrence of one does not affect the probability of the other(s).

P(A)

The probability of event A occurring in a given statistical experiment.

P(B)

In probability, represents the likelihood or chance of a particular event B occurring.

Conditional Probability

The conditional probability of an event happening after it's established that another event has occurred.