The following selected accounts are taken from the ledger of ABC Merchandising on December 31, 2022: Account Amount Sales $650,000 Sales discount 4% Gross profit $250,000 Operating expenses $180,000 Merchandise inventory, Jan. 1, 2022 $80,000 Merchandise inventory, Dec. 31, 2022 $60,000 Accounts receivable, Jan. 1, 2022 $90,000 Accounts receivable, Dec. 31, 2022 $70,000 The cost of sales ratio or cost ratio is:

The following selected accounts are taken from the ledger of ABC Merchandising on December 31, 2022: Account Amount Sales $650,000 Sales discount 4% Gross profit $250,000 Operating expenses $180,000 Merchandise inventory, Jan. 1, 2022 $80,000 Merchandise inventory, Dec. 31, 2022 $60,000 Accounts receivable, Jan. 1, 2022 $90,000 Accounts receivable, Dec. 31, 2022 $70,000 The cost of sales ratio or cost ratio is:

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

Chapter8: Inventories: Special Valuation Issues

Section: Chapter Questions

Problem 4MC

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