H Hunter Company's Records Indicate the Following Information for the Year

question 133

Multiple Choice

H. Hunter Company's records indicate the following information for the year: On December 31, a physical inventory determined that ending inventory of $500,000 was in the warehouse. H. Hunter's gross profit on sales has remained constant at 30%. H. Hunter suspects some of the inventory may have been taken by some new employees. At December 31, what is the estimated cost of missing inventory?

• A) $60,000
• B) $100,000
• C) $150,000
• D) $1,340,000

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Definitions:

Interest Payments

The regular required payments made by a borrower to a lender for the use of borrowed money, usually a portion of the loan amount.

Interest-only Loans

Loans for which the borrower pays only the interest on the principal balance, with the principal amount remaining unchanged over a set term.

Variable Rate Mortgages

Mortgages with interest rates that can fluctuate over time based on underlying benchmark interest rates or market conditions.

Housing Prices

The monetary cost of purchasing a house, which can vary widely based on location, size, and market conditions.