Big Box Store has operated with a 30% average gross profit ratio for a number of years. It had $107,000 in sales during the second quarter of this year. If it began the quarter with $18,700 of inventory at cost and purchased $72,700 of inventory during the quarter, its estimated ending inventory by the gross profit method is:

A. $32,100.
B. $29,100.
C. $22,470.
D. $16,500.
E. $18,700.


Answer: D

Business

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