At the Beginning of the Year, Uptown Athletic Had an Inventory

question 202

Multiple Choice

At the beginning of the year, Uptown Athletic had an inventory of $400,000. During the year, the company purchased goods costing $1,500,000. If Uptown Athletic reported ending inventory of $500,000 and sales of $2,000,000, their cost of goods sold and gross profit rate would be

• A) $1,000,000 and 70%.
• B) $1,400,000 and 30%.
• C) $1,000,000 and 30%.
• D) $1,400,000 and 70%.

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Definitions:

Short-Term Loans

Borrowed funds that are expected to be repaid within a short period, typically less than a year.