On March 31 a Company Needed to Estimate Its Ending

question 168

Multiple Choice

On March 31 a company needed to estimate its ending inventory to prepare its first quarter financial statements.The following information is available: Beginning inventory,January 1: $4,000
Net sales: $80,000
Net purchases: $78,000
The company's gross margin ratio is 25%.Using the gross profit method,the estimated ending inventory value would be:

• A)$82,000.
• B)$60,000.
• C)$20,000.
• D)$22,000.
• E)$19,500.

Comprehend the procedures and purposes of modern endoscopy techniques.

Understand the accounting treatment and financial reporting for treasury stock transactions.

Grasp the concept and implications of retained earnings and its components in the financial statements.

Identify and record transactions affecting retained earnings, including appropriations and dividends.

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Definitions:

Withdraw

The act of removing funds from a bank account or the action of retracting from a position or commitment.

Present Value

The present value of a future amount of money or series of cash flows, based on a certain return rate.

Cash Flow

The entire sum of funds moving in and out of a company, notably influencing its available cash resources.

Ten-Year Period

A specific duration of time that encompasses ten consecutive years.