On January 31, a company needed to estimate its ending inventory to prepare its monthly financial statements. The following information is currently available:Inventory as of January 1: $120,500Net sales for January: $400,000Net purchases for January: $270,500This company typically achieves a gross profit ratio of 15%. Ending Inventory under the gross profit method would be:

A. $10,425.
B. $9,000.
C. $102,425.
D. $51,425.
E. $51,000.


Answer: E

Business

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