At the Beginning of 2018,Midway Hardware Has an Inventory of $400,000.Because

question 35

Multiple Choice

At the beginning of 2018,Midway Hardware has an inventory of $400,000.Because sales growth was strong during 2018,the owner wants to increase inventory on hand to $450,000 at December 31,2018.If net sales for 2018 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 2018.

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

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Definitions:

Shareholder Approval

The process by which actions affecting a corporation and its governance must be approved by a majority of its shareholders.

Ordinary Course

Activities that are considered part of the normal, day-to-day operations of a business.

Assumes Liabilities

The act of taking on the legal debts or obligations of another party, often in the context of business transactions.

Fundamental Change

A significant alteration in the operation, structure, or nature of a business or organization that fundamentally changes its course or identity.