At the Beginning of 2013, Wilson Stores Has an Inventory

question 88

Multiple Choice

At the beginning of 2013, Wilson Stores has an inventory of $300,000. Because sales growth was strong during 2013, the owner wants to increase inventory on hand to $450,000 at December 31, 2013. If net sales for 2013 are expected to be $2,600,000, and the gross profit rate is expected to be 35%, compute the cost of the goods the owner should expect to purchase during 2013.

• A) $750,000.
• B) $1,240,000.
• C) $1,690,000.
• D) $1,840,000.

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Definitions:

Management

A process designed to achieve an organization's objectives by using its resources effectively and efficiently in a changing environment.