Thompson TV and Appliance reported the following in its 2021 financial statements:2021Sales$422,000Cost of goods sold:Inventory, January 1Net purchasesGoods available for sale73,000336, 000409,000Inventory, December 31Cost of goods soldGross profit103,000306,000$116,000Thompson's 2021 gross profit ratio is. (Round your answer to the nearest whole percentage.)Multiple ChoicePrev10 of 15Next> Multiple Choice27%.20%.30%.None of these answer choices are correct.< Prev10 of 15Next

Name: Thompson TV and Appliance reported the following in its 2021 financia
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Description: Thompson TV and Appliance reported the following in its 2021 financial statements:2021Sales$422,000Cost of goods sold:Inventory, January 1Net purchasesGoods available for sale73,000336, 000409,000Inventory, December 31Cost of goods soldGross profit1

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Thompson TV and Appliance reported the following in its 2021 Sales $422,000 Cost of goods sold: Inventory, January 1 Net purchases Goods available for sale 73,000 336, 00ε 409. 00

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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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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Question

Thompson TV and Appliance reported the following in its 2021 financial statements:
2021
Sales
$422,000
Cost of goods sold:
Inventory, January 1
Net purchases
Goods available for sale
73,000
336, 000
409,000
Inventory, December 31
Cost of goods sold
Gross profit
103,000
306,000
$116,000
Thompson's 2021 gross profit ratio is. (Round your answer to the nearest whole percentage.)
Multiple Choice
Prev
10 of 15
Next>

Multiple Choice
27%.
20%.
30%.
None of these answer choices are correct.
< Prev
10 of 15
Next

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