Malone's Products
August 1 − August 31 Using the Retail Method, Malone Found the Estimated Value of l

Short Answer

Malone's Products
August 1 − August 31 \begin{array} { l l l } & \text { Cost } & \text { Retail } \\\hline \text { Beginning Inventory, August 1 } & \$ 135,000 & \$ 180,000 \\\text { Purchases } & \$ 300,000 & \$ 400,000\\\text { Net Sales}\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\quad\$ 450,000\\end{array} Using the retail method, Malone found the estimated value of his ending inventory at cost on August 31 was $97,500. What was the amount of his gross profit?