On September 30 a Company Needed to Estimate Its Ending

question 19

Multiple Choice

On September 30 a company needed to estimate its ending inventory to prepare its third quarter financial statements. The following information is available: Beginning inventory, July 1: $4,000
Net sales: $40,000
Net purchases: $41,000
The company's gross margin ratio is 15%. Using the gross profit method, the cost of goods sold would be:

• A) $4,000.
• B) $5,000.
• C) $21,000.
• D) $25,000.
• E) $34,000.

---

Definitions:

Increased Success

An improvement or growth in achieving goals, marked by measurable outcomes or achievements in personal or professional areas.

Positive Visual Imagery

Picturing a positive outcome in your mind.

Desired Outcome

The specific result or goal that an individual or group aims to achieve.

Self-Confidence

The belief in one's own abilities or qualities, often leading to a sense of assurance and independence.