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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