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

question 109

Multiple Choice

The following information is available for the past month for a retail store: $$\begin{array} { | l | r | } \hline \text { Sales } & \$ 105,000 \\\hline \text { Markups } & \$ 10,000 \\\hline \text { Markdowns } & \$ 8,000 \\\hline \text { Purchases (at cost) } & \$ 38,800 \\\hline \text { Purchases (at retail) } & \$ 107,000 \\\hline \text { Beginning inventory (at cost) } & \$ 33,000 \\\hline \text { Beginning inventory (at retail) } & \$ 48,000 \\\hline\end{array}$$
What is the ending inventory at cost using the basic retail method? (Round cost-to-retail ratios to four decimal places.)

• A) $23,780
• B) $28,220
• C) $52,000
• D) $15,000

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Definitions:

Nation's Currency

The legal tender or monetary system that a country uses for its economic transactions.

Tastes

The perceived preferences or desires of consumers or individuals, often influencing their behavior and choices.

Exchange Rates

The value of one currency expressed in terms of another currency, used to determine how much of one currency you can exchange for another.

Trade Deficits

A situation in which a country's imports exceed its exports, resulting in a negative balance of trade.