Robertson Corporation's Inventory Balance Was $22,000 at the Beginning of the Year

Multiple Choice

Robertson Corporation's inventory balance was $22,000 at the beginning of the year and $20,000 at the end. The inventory turnover ratio for the year was 6.0 and the gross profit ratio 40%. What were net sales for the year?

A) $126,000
B) $200,000
C) $120,000
D) $210,000 Average inventory = $21,000 6.0 = $126,000 = cost of goods sold
$126,000 (1 .40) = $210,000