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:

Tax-transfer System

The governmental mechanism by which taxes are collected from individuals and businesses, and redistributed through spending programs, often targeting social welfare and public services.

Progressive

Relating to or advocating for progress, change, or improvement, as opposed to wishing to maintain the status quo.

Proportional

Corresponding in size or amount to something else; having a constant relation in degree or number.

Bimodal

Characterized by or having two distinct modes or peaks in a distribution or set of data.