Multiple Choice
On September 30, Stark Company needed to estimate its ending inventory in order to prepare its third-quarter financial statements. The following information is available: (1) Inventory, July 1: $12,500 (2) Third quarter net sales: $40,000 (3) Third quarter net purchases: $17,500 Stark's gross profit ratio is 15%. Estimated cost of goods sold would be
A) $6,000
B) $34,000
C) $36,000
D) $40,000
E) $57,500
Correct Answer:
Verified
Correct Answer:
Verified
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