Golden Oak Antique Shop Has the Following Account Balances at the End

question 21

Multiple Choice

Golden Oak Antique Shop has the following account balances at the end of the current accounting period. $$\begin{array} { | l | r | } \hline \text { Beginning inventory } & \$ 73,250 \\\hline \text { Net purchases } & 57,650 \\\hline \text { Net sales revenue } & 85,500 \\\hline\end{array}$$ A normal gross profit for the company is $45%.What is the company's estimated cost of goods sold for the accounting period?

• A) $92,425
• B) $38,475
• C) $47,025
• D) $83,875

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Definitions:

Expansionary Phase

A period within the business cycle where economic activity, including production, sales, and employment, is growing.

Consumer Confidence

A statistical measure that reflects the overall economic health as perceived by consumers, based on their spending and saving habits.

Stock Market

A public marketplace for buying and selling shares of publicly held companies, reflecting the investment climate and economic health.

Housing Construction

The process of building residential structures such as houses, apartments, and townhomes.