A firm’s financial statements reflect the following information:
|
Beginning inventory |
$2,900,000 |
|
Purchase during the year |
$1,600,000 |
|
Ending inventory |
???? |
|
Sales |
$3,900,000 |
|
Gross Margin |
0.41 |
What was the firm’s ending inventory for this period?
The correct answer was A.
First we can determine the COGS by: COGS = sales (1 －gross margin) = $2,301,000.
Then, the ending inventory = beginning inventory + purchases －COGS = $2,199,000 | 
发表于 2006-4-27 16:35
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