New York Sales Inc

Essay

New York Sales Inc. uses the conventional retail method to estimate its ending inventories. The following data has been summarized for December 31, 2009:
Required:
Compute the cost-to-retail percentage used by New York Sales Inc.
$$\begin{array} { l c r } & \text { Cost } &{ \text { Retail } } \\\text { Inventory, January 1 } & & \$ 160,000 \\\text { Purchases } & & 538,000 \\\text { Net markups } & & 12,000 \\\text { Net markdowns } & & 9,100 \\\text { Net sales } & & 582,000 \\\text { Inventory, Dec. 31 } & \$ 77,285 &\end{array}$$