ABC Inc Had Net Sales of $120,000 During 2013

question 137

Multiple Choice

ABC Inc. had net sales of $120,000 during 2013. Its finished goods inventories were valued at $20,000 on January 1^st, 2013. During the year, $60,000 of goods was purchased for resale. The company has a gross profit percentage of 40%. What was the company's estimated inventory at December 31^st, 2013 under the Gross Profit method?

• A) $8,000.
• B) $72,000.
• C) $48,000.
• D) $60,000.

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Definitions:

Auteur Theory

A film criticism concept that holds the director's personal vision, style, and creative influence paramount, considering them the "author" of the movie.

Studio Distributor

A company responsible for the marketing and distribution of movies and television shows, usually within a specific territory.

Collaborative Process

A method in which two or more parties work together towards a common goal, often seen in creative, academic, and business contexts.

RKO Studio

An iconic American film production and distribution company known for its significant contributions to the film industry during the early to mid-20th century.