I need answer of this question solution general accounting Landis Company is preparing its financial statements.Gross margin is normally 40% of sales. Information takenfrom the company's records revealed sales of $100,000;beginning inventory of $10,000 and purchases of$70,000.The estimated amount of ending inventory would be:a. $20,000.b. $40,000.c. $60,000.d. $32,000.

Step 1: Define Ending InventoryEnding inventory refers to the total dollar amount of finished goods…

Answered: Landis Company is preparing its…

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter15: Financial Statement Analysis

Section: Chapter Questions

Problem 46E

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Landis Company is preparing its financial statements. Gross margin is normally 40% of sales. Information taken from the company's records revealed sales of $100,000; beginning inventory of $10,000 and purchases of $70,000. The estimated amount of ending inventory would be: a. $20,000. b. $40,000. c. $60,000. d. $32,000.
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Landis Company is preparing its financial statements. Gross margin is normally 40% of sales. Information taken from the company's records revealed sales of $60,000; beginning inventory of $6,000 and purchases of $42,000. What is the estimated amount of ending inventory at the end of the period? Multiple Choice O O O $19,200 $36,000 $12,000 $24,000
Landis Company is preparing its financial statements. Gross margin is normally 40% of sales. Information taken from the company's records revealed sales of $95,000; beginning inventory of $9,500 and purchases of $66,500. What is the estimated amount of ending inventory at the end of the period? Multiple Choice ο ο ο ο $30,400 $57,000 $38,000 $19,000
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