Haley's Florist Shop Has the Following Account Balances at the End

question 5

Multiple Choice

Haley's Florist Shop has the following account balances at the end of the current accounting period. $$\begin{array} { | l | r |} \hline \text { Beginning inventory } & \$ 53,500 \\\hline \text { Net purchases } & 75,500 \\\hline \text { Net sales revenue } & 93,700 \\\hline\end{array}$$ A normal gross profit percent is 30%.What is the estimated ending inventory as determined by the gross profit method?

• A) $100,890
• B) $28,110
• C) $63,410
• D) $65,590

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Definitions:

Risk Level

The degree of uncertainty and/or potential financial loss inherent in an investment decision.

Treasury Bills

Short-term government securities issued at a discount from face value and mature in a year or less, representing a safe and liquid investment option.

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A stock that carries a high level of volatility and uncertain returns, often associated with companies in emerging or highly competitive sectors.