Xu,IncReported the Following Information for Year 1 and Year 2

question 112

Essay

Xu,Inc.reported the following information for Year 1 and Year 2:
$\begin{array}{lrr} & \underline{\text { Year 2 }} & \text { Year 1 } \\\text { Sales } & \$ 850,000 & \$ 890,000 \\\text { Sales discounts } & 15,000 & 23,000 \\\text { Purchases } & 500,000 & 600,000 \\\text { Ending inventory } & 50,000 & 40,000 \\\text { Transportation-in } & 10,000 & 19,000 \\\text { Purchase discounts } & 5,000 & 5,000\end{array}$
Determine the following amounts for Xu,Inc.for Year 2:
A)net cost of inventory purchases
B)cost of goods available for sale
C)cost of goods sold
D)net sales
E)gross profit ratio
F)inventory turnover ratio
G)average days to sell inventory

• A)net cost of inventory purchases
• B)cost of goods available for sale
• C)cost of goods sold
• D)net sales
• E)gross profit ratio
• F)inventory turnover ratio
• G)average days to sell inventory

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Definitions:

Necessary Condition

A condition that must be present for an event or action to occur.

Sufficient Condition

A condition or set of conditions that guarantees the occurrence of another event or state.

Disconfirming Instances

Instances or examples that provide evidence against a particular hypothesis or statement.

Generalization

A broader statement or principle derived from specific instances, making wider claims based on limited observations.