At the Beginning of 2015,Midway Hardware Has an Inventory of $400,000.Because

question 18

Multiple Choice

At the beginning of 2015,Midway Hardware has an inventory of $400,000.Because sales growth was strong during 2015,the owner wants to increase inventory on hand to $450,000 at December 31,2015.If net sales for 2015 are expected to be $1,600,000,and the gross profit rate is expected to be 35%,compute the cost of the merchandise the owner should expect to purchase during 2015.

• A)$1,490,000.
• B)$1,040,000.
• C)$1,090,000.
• D)$1,600,000.

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