For the Year Ended December 31,2016,Complex Company Reported Gross Margin

question 56

Multiple Choice

For the year ended December 31,2016,Complex Company reported gross margin of $29,700,which was 30% of the sales for the period.The cost of goods available for sale was 120% of the cost of goods sold.The beginning inventory was twice as much as the ending inventory.What was the amount of purchases for 2016?

• A)$13,860
• B)$29,700
• C)$41,580
• D)$55,440

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Definitions:

Free Samples

Small portions or quantities of a product given away for free to promote or test its effectiveness.

Barriers to Adoption

Factors or obstacles that prevent potential customers from adopting a new product, service, or technology.

Risk

The potential for losing something of value, which can be financial, physical, emotional, or otherwise, often assessed in terms of likelihood and impact.

Value Barrier

An obstacle that prevents a customer from recognizing or accepting the value in a product or service.