cost of goods sold and gross profit rate would be
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Target co. had an inventory of $600,000. During the year, the company purchased additional
inventory costing $2,250,000. If Target reported ending inventory of $750,000 and sales of
$3,000,000, their cost of goods sold and gross profit rate would be
O $1,500,000 and 70%.
O $2,100,000 and 30%.
O $1,500,000 and 30%.
O $2,100,000 and 70%.
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