Answers Selected Answer:71.05%What is the cost to retail ratio?Correct Answer:71.05%Question 2On January 1, 2019, the merchandise inventory of Gulf, Inc. was $800,000. During 2019 Gulf purchased $1,600,000 of merchandise andrecorded sales of $2,000,000. The gross profit rate on these sales was 30%. What is the merchandise inventory of Gulf at December 31, 2019?Selected Answer:$1,000,000.Correct Answer:$1,000,000.Question 3Arab Inc. uses the conventional retail method to determine its ending inventory at cost. Assume the beginning inventory at cost (retail) wereS65,500 ($99,000), purchases during the current year at cost (retail) were S568,000 ($860,000), freight-in on these purchases totaled $26,500,sales during the current year totaled $811,000, and net markups were $69,000 and net markdown were $15,000. What is the ending inventoryvalue at cost?Selected Answer:$129,684Correct Answer:$129,684Question 4The sales price for a product provides a gross profit of 32% of sales price. What is the gross profit as a percentage of cost?2:23 AM

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On January 1, 2019, the merchandise inventory of Gulf, Inc. was $800,000. During 2019 Gulf purchased $1,600,000 of merchandise and recorded sales of $2,000,000. The gross profit rate on these sales was 30%. What is the merchandise inventory of Gulf at December 31, 2019? Selected Answer: $1,000,000. Correct Answer: $1,000,000.

On January 1, 2019, the merchandise inventory of Gulf, Inc. was $800,000. During 2019 Gulf purchased $1,600,000 of merchandise and recorded sales of $2,000,000. The gross profit rate on these sales was 30%. What is the merchandise inventory of Gulf at December 31, 2019? Selected Answer: $1,000,000. Correct Answer: $1,000,000.

Intermediate Accounting: Reporting And Analysis

3rd Edition

ISBN:9781337788281

Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach

Chapter6: Cash And Receivables

Section: Chapter Questions

Problem 6E

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