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The following information pertains to the Godfrey Company for the six months ended June 30 of the current year: Merchandise inventory, January 1 $700,000 Purchases Freight-in Net sales 5,000,000 400,000 6,000,000 Gross profit is normally 25% of sales. What is the estimated amount of inventory on hand at June 30? a. $100,000. b. $1,600,000. c. $2,100,000. d. $4,600,000.

The following information pertains to the Godfrey Company for the six months ended June 30 of the current year: Merchandise inventory, January 1 $700,000 Purchases Freight-in Net sales 5,000,000 400,000 6,000,000 Gross profit is normally 25% of sales. What is the estimated amount of inventory on hand at June 30? a. $100,000. b. $1,600,000. c. $2,100,000. d. $4,600,000.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The following information pertains to the Godfrey Company for the six months ended June 30 of the current year: Merchandise inventory, January 1 $700,000 Purchases Freight-in Net sales 5,000,000 400,000 6,000,000 Gross profit is normally 25% of sales. What is the estimated amount of inventory on hand at June 30? a. $100,000. b. $1,600,000. c. $2,100,000. d. $4,600,000.
Transcribed Image Text:The following information pertains to the Godfrey Company for the six months ended June 30 of the current year: Merchandise inventory, January 1 $700,000 Purchases Freight-in Net sales 5,000,000 400,000 6,000,000 Gross profit is normally 25% of sales. What is the estimated amount of inventory on hand at June 30? a. $100,000. b. $1,600,000. c. $2,100,000. d. $4,600,000.
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