Answer the following statements true (T) or false (F)
1. If a company experiences a loss of inventory for fire, there is no way to estimate the inventory.
2. Danio Corp has $125,000 net sales revenue and a historical gross profit percentage of 25%; therefore, the estimated cost of goods sold is $31,250.
3. Betta Co. has $45,000 net sales revenue and a historical gross profit percentage of 30%; therefore, the estimated cost of goods sold is $31,500.
4. Inventory is the most important asset in a service business.
5. Inventory turnover equals average ending inventory divided by cost of goods sold.
1. TRUE
2. FALSE
3. TRUE
4. FALSE
5. FALSE
You might also like to view...
An income statement is an example of an XBRL instance document
Indicate whether the statement is true or false
A salesperson must always search for new prospects to increase sales and replace previous customers.
Answer the following statement true (T) or false (F)
A(n) ________ is a limit on the amount of a product that can be imported into a country
A) quota B) exchange rate C) tariff D) antidumping law E) antitrust rate
Microsoft Word has a feature to edit written documents. This feature is called:
A) Change Icon B) Doc Edit C) Dictionary D) Track Changes E) Edit Changes