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Prior to Taking a Physical Inventory at Year-End, the Perpetual

question 27

Multiple Choice

Prior to taking a physical inventory at year-end, the perpetual inventory records of Athena Designs showed an inventory of $26,000, sales of $358,000, and a cost of goods sold of $215,000. The year-end physical inventory indicated goods on hand costing $24,000. The company's gross profit for the year was:

Identify different types of retail operations and their characteristics.

Recognize the role that retailing plays in providing products and services to consumers for personal, family, or household use.

Understand the global presence of large retailers and their strategies.

Comprehend the significance of retail sales data in the United States and the economic impact of the retail industry.

Definitions:

Value Added

The increase in worth of a product or service as a result of a particular process, often characterized by the difference between the price of the finished product and the cost of the inputs involved in making it.

Raw Materials

Basic materials extracted from natural resources or produced through agriculture, which are used in the production of goods and services.

Injection

Any spending other than by households or any income other than from resource earnings; includes investment, government purchases, exports, and transfer payments.

Circular Flow

An economic model that illustrates the continuous movement of goods, services, and money between producers and consumers in an economy.