Patterson Company ended the month of March with inventory of $20,000. Patterson expects to end April with inventory of $13,000 after selling goods with a cost of $93,000. How much inventory must Patterson purchase during April in order to accomplish these results?
A. $106,000
B. $126,000
C. $100,000
D. $86,000
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Sales are $500,000 and cost of goods sold is $320,000. Beginning and ending inventories are $28,000 and $38,000, respectively. How many times did the company turn its inventory over during this period?
A. 9.7 times
B. 6.4 times
C. 15.2 times
D. 5.5 times
Trudell, Inc., reported the following data:Freight in ...........................$26,000Purchases ..........................207,000Beginning inventory ........52,000Purchase discounts.............4,300Dividends...............................4,000Purchase returns ................6,300Sales revenue....................446,000Ending inventory.............47,000Trudell's gross profit percentage is
A. 51.0
B. 48.0
C. 49.0
D. 55.7
Crystal Aquarium Supplies had the following beginning inventory, net purchases, net sales, and gross profit percentage for the first quarter of 2016:Beginning inventory, $57,000Net purchases, $72,000Net sales revenue, $92,000Gross profit rate, 20%By the gross profit method, the ending inventory should be
A. $110,600
B. $55,400
C. $129,000
D. $73,600
An error understated Grand Company's December 31, 2016, ending inventory by $27,000. What effect will this error have on net income for 2017?
A. Understate
B. No effect
C. Overstate
D. Not sure