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When Preparing Its Quarterly Financial Statements,Pace Co

question 87

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When preparing its quarterly financial statements,Pace Co.uses the gross margin method to estimate ending inventory.The following information is available for the 1st quarter of 2016:
What was Pace's estimated inventory on March 31,2016?


Definitions:

Base Year

A specific year or period that serves as a benchmark for financial analysis or comparison with other years.

Vertical Analysis

A method of financial statement analysis in which each line item is listed as a percentage of another item, typically used to express items as a percentage of total sales or total assets.

Vertical Analysis

A method of financial statement analysis in which each entry for each of the three major categories of accounts (assets, liabilities, and equities) is represented as a proportion of the total account.

Total Liabilities

The combined amount of debts and obligations that a company owes to others, reported on its balance sheet.

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