Jones Co Uses the Retail Inventory Method

question 62

Multiple Choice

Jones Co. uses the retail inventory method. Given the following data, what is the ending inventory at cost? Sales at retail $80,000, net purchases at cost $41,200, net purchases at retail $66,800, beginning inventory at cost $22,400, beginning inventory at retail $36,800. Round cost ratio to the nearest whole percent.

• A)$23,600
• B)$63,600
• C)$14,936
• D)$14,396
• E)None of these

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Definitions:

Cash Flow

The net amount of cash being transferred in and out of a business, representing the company's operational, investing, and financing activities.

Investing Section

A segment within the cash flow statement that records cash activities related to non-current assets such as buying and selling equipment or property.

Cash Flow Statement

A financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company, showing how well it manages its cash position.

Stock Investment

The process of buying shares of companies in the hope of making a profit from dividends or the sale of the shares at a higher price in the future.