Bilboa, Inc. bought $82,000 of inventory during 2020. During the year the company sold inventory for $115,000. Bilboa had a balance in beginning inventory of $6,000 and an ending balance of $10,000. What was the company's gross profit for 2020? $33,000 $37,000 $41,000 $43,000 O None of the above

Bilboa, Inc. bought $82,000 of inventory during 2020. During the year the company sold inventory for $115,000. Bilboa had a balance in beginning inventory of $6,000 and an ending balance of $10,000. What was the company's gross profit for 2020? $33,000 $37,000 $41,000 $43,000 O None of the above

Name: Bilboa, Inc. bought $82,000 of inventory during 2020. During the year
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Description: Bilboa, Inc. bought $82,000 of inventory during 2020. During the year the company sold inventoryfor $115,000. Bilboa had a balance in beginning inventory of $6,000 and an ending balance of$10,000. What was the company's gross profit for 2020?O $33,0

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

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Concept explainers

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.

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Bilboa, Inc. bought $82,000 of inventory during 2020. During the year the company sold inventory
for $115,000. Bilboa had a balance in beginning inventory of $6,000 and an ending balance of
$10,000. What was the company's gross profit for 2020?
O $33,000
$37,000
O $41,000
$43,000
O None of the above

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