The Net Sales Figure of XYZ Company in 2012 Was

question 145

Multiple Choice

The net sales figure of XYZ Company in 2012 was $300,000. If the cost of goods available for sale was $280,000 and gross margin was 35 percent of net sales, ending inventory must have been

• A) $70,000
• B) $85,000
• C) $195,000
• D) $105,000

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Definitions:

Trade Balance

The difference between a country's exports and imports of goods and services.

Colonial Power

A country that establishes control over foreign territories to exploit them economically, politically, and culturally.

Manufactured Products

Goods that have been processed or transformed from raw materials into finished goods ready for sale.

Raw Materials

Basic materials extracted from the environment or that are used in the initial stages of production to make goods.