Alpha Hardware Sells on the Instalment Plan

question 28

Multiple Choice

Alpha Hardware sells on the instalment plan.Sales-related figures for Alpha hardware for 2017 were as follows: sales,$700 000;down payments on the sales,$70 000;collections on instalments $300 000;beginning inventory,$50 000;ending inventory,$40 000;and purchases,$410 000.What is Alpha Hardware's gross profit for 2017 using the instalment method?

• A)$370 000
• B)$280 000
• C)($50 000)
• D)$148 000

---

Definitions:

Technical Skill

The expertise and ability to perform tasks related to a specific field or profession, typically involving methods, processes, or procedures.

Specific Tasks

Particular duties or responsibilities assigned as part of a job or project.

Managerial Competencies

The skills and abilities required by managers to perform their duties effectively, including leadership, strategic thinking, and decision-making.

Management Processes

Various administrative and operational activities involved in running an organization, including planning, organizing, leading, and controlling.