Sales of $250,000 Are Forecast for the Third Quarter

question 59

Multiple Choice

Sales of $250,000 are forecast for the third quarter. Gross profit is 60% of sales, and beginning inventory is $165,000. If ending inventory is budgeted as $183,000, what are the budgeted purchases?

• A) $118,000
• B) $132,000
• C) $168,000
• D) $82,000

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Definitions:

Stomach

An organ in the gastrointestinal tract that plays a key role in the digestion of food by secreting gastric acids and enzymes.

pH Strip

A small piece of paper treated with a chemical indicator that changes color to show the acidity or alkalinity of a solution when dipped into it.

Thrombophlebitis

Inflammation of a vein followed by formation of a blood clot.

PACU

stands for Post-Anesthesia Care Unit, a specialized care area where patients are monitored and recover from the effects of anesthesia following surgery.