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:

Exchange Rates

The price at which one currency can be converted into another currency, influencing international trade and investments.

Balance Sheet

A financial statement that displays a company’s financial position at a certain date, listing assets, liabilities, and shareholder equity.

Exchange Rates

The price of one nation's currency expressed in the currency of another nation, used to convert from one currency to another for trade and finance.

Cash

This term refers to money in the form of currency that is used to conduct transactions, make purchases, or settle debts.