Adams Consultancy Has the Following Account Balances at the End

question 102

Multiple Choice

Adams Consultancy has the following account balances at the end of the current accounting period. $$\begin{array} { | l | r | } \hline \text { Beginning inventory } & \$ 75,000 \\\hline \text { Net purchases } & 415,000 \\\hline \text { Net sales revenue } & 500,000 \\\hline\end{array}$$ The normal gross profit percent is 40%. What is the estimated ending inventory as determined by the gross profit method?

• A) $190,000
• B) $415,000
• C) $196,000
• D) $490,000

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Definitions:

Cultural Border

An invisible boundary based on cultural differences that separate areas or people, influencing identity, customs, and practices.

Plains Indians

Native American peoples who inhabited the Great Plains of the United States and Canada, known for their nomadic lifestyles and reliance on the buffalo.

Small Horses

Generally refers to horse breeds that are smaller in size, often including miniature horses and ponies.

Buffalo

Large, furry animals native to North America, also known as bison, which played a central role in the lives of Native American tribes.