ABC Inc Had Net Sales of $120,000 During 2013

question 137

Multiple Choice

ABC Inc. had net sales of $120,000 during 2013. Its finished goods inventories were valued at $20,000 on January 1^st, 2013. During the year, $60,000 of goods was purchased for resale. The company has a gross profit percentage of 40%. What was the company's estimated inventory at December 31^st, 2013 under the Gross Profit method?

• A) $8,000.
• B) $72,000.
• C) $48,000.
• D) $60,000.

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Definitions:

Under-Rewarded

Feeling or being inadequately compensated or acknowledged for one’s efforts or contributions.

Over-Rewarded

A situation where an individual receives more recognition or compensation than what is perceived to be fair or deserved.

Valence

The value individuals place on work outcomes.

Procedural Justice

The degree to which people perceive the implementation of company policies and procedures to be fair.