Use the Following Information to Estimate the Third Quarter Ending

question 39

Multiple Choice

Use the following information to estimate the third quarter ending inventory under the gross profit method. This company's gross profit ratio is 20%. Third quarter beginning inventory: $54,000
Net sales for third quarter: $85,000
Net purchases for third quarter: $21,000

• A)$101,000
• B)$58,000
• C)$35,000
• D)$7,000
• E)$14,000

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Definitions:

Chain of Command

The formal line of authority, shown within an organization, where commands are passed down from one level to the next.

Administrator

A manager in a public or nonprofit organization.

Accountability

The obligation of an individual or organization to account for its activities, accept responsibility for them, and to disclose the results in a transparent manner.

Henry Mintzberg

A renowned management theorist known for his work on business strategy and organizational structures.