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.

---

Definitions:

Cathartic

Relating to the process of releasing, and thereby providing relief from, strong or repressed emotions.

Expressions Of Emotions

The process of conveying one's feelings or emotions through gestures, facial expressions, or verbal communication.

Group Setting

The physical or social context in which a group operates or interacts.

Counseled

Provided professional guidance in resolving personal or psychological problems.