If the Estimated Rate of Gross Profit Is 30%, What $~~~~~~~~~~~~~~\$ 125,000$

question 161

Multiple Choice

If the estimated rate of gross profit is 30%, what is the estimated cost of the merchandise inventory on September 30, based on the following data?? Sept. 1 Merchandise inventory (at cost) $~~~~~~~~~~~~~~\$ 125,000$
Sept. 1-30 Purchases, net (at cost) $~~~~~~~~~~~~~~~~~~~~~~~300,000$
Sept. 1-30 Sales $~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~150,000$

• A) $320,000
• B) $192,500
• C) $275,000
• D) $105,000

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Definitions:

Solar Energy

Energy derived from the sun’s rays, utilized through various technologies for heating, electricity, and other applications.

Genus Rhizobium

A group of soil-borne bacteria that form symbiotic relationships with leguminous plants, fixing nitrogen in nodules on their roots.

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Microscopic, single-celled organisms that exist in diverse environments and can have roles ranging from decomposing dead matter to causing disease.

Nitrogen

A chemical element with symbol N, atomic number 7; a colorless, odorless unreactive gas that forms about 78% of the earth's atmosphere and is a constituent of all living tissues.