Managerial Accounting Villa Sales Company had the following amounts relatedto its business:Beginning Inventory $12,000PurchasesNet SalesGross Profit$42,000$50,000$15,000The amount of the ending inventory is:a. $54,000b. $77,000c. $19,000d. $35,000

Step 1: Introduction to the Ending InventoryEnding inventory is the value of the inventory asset on…

Answered: Villa Sales Company had the following…

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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Kulsrud Company would like to estimate the current inventory level. Using the gross profit method and the following information, estimate the current inventory level for Kulsrud Company. Goods available for sale 100,000 Net sales 150,000 Normal gross profit as a percent of sales 40%
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On January 1, Pope Enterprises inventory was 625,000. Pope made 950,000 of net purchases during the year. On its year-end income statement, Pope reported cost of goods sold of 1,025,000. Calculate Popes December 31 ending inventory.
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Consider the following financial statement information for the Hop Corporation: Item Beginning Inventory $16,200 Accounts 14,000 Receivable Accounts Payable 11,000 Net Sale COGS What is the payable period for Hop Corporation? 17.52 days 27.16 days 20.32 days 13.44 days $219,000 168,000 Ending $19,100 16,000 14,000
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None
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Villa Sales Company had the following amounts related to its business: Beginning Inventory $12,000 Purchases Net Sales Gross Profit $42,000 $50,000 $15,000 The amount of the ending inventory is: a. $54,000 b. $77,000 c. $19,000 d. $35,000