Use the Following Information for the Following Question -The Ending Inventory at Retail Should Be
A) $210,000

question 78

Multiple Choice

Use the following information for the following question:
Tang Inc. uses the retail inventory method. The following information is available for the current year:
$\begin{array}{lll} & \text { Cost } & \text { Retail } \\\text { Beginning inventory } & \$ 117,000 & \$ 183,000 \\\text { Purchases } & 442,000 & 623,000 \\\text { Freight-in } & 8,000 & - \\\text { Employee discounts } & - & 3,000 \\\text { Net markups } & - & 22,000 \\\text { Net markdowns } & - & 30,000 \\\text { Sales } & - & 585,000\end{array}$

-The ending inventory at retail should be

• A) $210,000.
• B) $216,000.
• C) $225,000.
• D) $240,000.

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Definitions:

Financial Planning

A comprehensive evaluation of someone's current pay and future financial state by using current known variables to predict future income, asset values, and withdrawal plans.

Fixed Assets Investment

Expenditure on physical assets such as machinery, land, and buildings, intended for long-term use in the production of goods and services.

Financial Leverage

The use of borrowed money (debt) in an effort to increase the potential return of an investment.

Liquidity and Working Capital

The ability of a company to meet its short-term obligations using its most liquid assets, and the difference between current assets and current liabilities, respectively.