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

question 97

Multiple Choice

H. Hunter Company's records indicate the following information for the year: $$\begin{array} { l r } \text { Merchandise inventory, 1/1 } & \$ 550,000 \\\text { Purchases } & 2,250,000 \\\text { Net sales } & 3,200,000\end{array}$$ 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

---

Definitions:

Standard Deviation

An indicator of the degree of difference or spread among a collection of numbers.

Confidence Interval

A continuum of values, originating from sample-derived statistics, that is considered likely to embrace the value of a mysterious population parameter.

Breaking Strength

The amount of stress or force required to break a material, often measured in pounds or kilograms.

Confidence Level

Confidence level represents the probability that an interval estimate will include the true population parameter, often expressed as a percentage.