Detroit Company Is a Merchandising Business That Started Its Operations

question 41

Essay

Detroit Company is a merchandising business that started its operations in 2012.During the year,Detroit reported sales of $450,000; inventory purchases of $310,000; and an inventory balance of $50,000 at the end of the year.
Required:
a.What was Detroit's cost of goods available for sale for 2012?
b.What was the cost of goods sold?
c.Calculate the amount of Detroit's gross margin for 2012 and the gross margin percentage.

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Definitions:

Disjunction

A compound proposition containing two or more component propositions (the disjuncts) and asserting that at least one of them is true.

Disjuncts

Components of a logical disjunction, or an "or" statement, where either one or the other (or both) of the elements is true.

Assert Propositions

The act of confidently stating or affirming a propositional statement as true or valid in a discourse or argument.

Sentence

A set of words that is complete in itself, expressing a statement, question, exclamation, or command, and consisting of a main clause and sometimes one or more subordinate clauses.