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

question 163

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 cost of goods sold for 2013?

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

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Definitions:

James Tallmadge

A U.S. politician known for proposing an amendment to limit the spread of slavery in Missouri during its admission to the Union.

Missouri Statehood

The admission of Missouri as the 24th state of the United States on August 10, 1821, following the Missouri Compromise.

Maine

A U.S. state located in the northeastern part of the country, known for its scenic coastlines and maritime history.