For the Year Ended December 31, 2012, Complex Company Reported

question 53

Multiple Choice

For the year ended December 31, 2012, 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 2012?

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

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Definitions:

Gluconeogenesis

A metabolic pathway that results in the generation of glucose from certain non-carbohydrate carbon substrates such as lactate, glycerol, and amino acids.

Amino Acids

Organic compounds that combine to form proteins, serving as the building blocks of proteins and are essential for the synthesis of hormones and neurotransmitters.

Glycerol

A colorless, odorless, sweet-tasting liquid that serves as a backbone for triglycerides and is an important intermediate in carbohydrate and lipid metabolism.

Glycogenesis

The process of converting glucose into glycogen for storage in the liver and muscle cells.