Lewiston Company Is Preparing Its Financial Statements

question 118

Multiple Choice

Lewiston Company is preparing its financial statements. Gross margin is normally 40% of sales. Information taken from the company's records revealed sales of $50,000; beginning inventory of $5,000 and purchases of $35,000. The estimated amount of ending inventory would be:

• A)$10,000.
• B)$30,000.
• C)$20,000.
• D)$16,000.

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Definitions:

New York

A state in the northeastern U.S., known for New York City and its status as a cultural and financial hub.

North Atlantic Treaty

An agreement that established the North Atlantic Treaty Organization (NATO), a military alliance designed for collective defense against aggression.

Article 5

A provision within a document or constitution which details specific processes or regulations, such as Article 5 of the NATO treaty which outlines the principle of collective defense.

September 11

Refers to the terrorist attacks that occurred on September 11, 2001, in the United States, particularly targeting the World Trade Center in New York City and the Pentagon.