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A business had an inventory cost of $40,000 the last time it was counted. Since then, it made $80,000 in purchases and sales of $110,000. Its gross profit was 25%. What is its estimated inventory at cost
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A business had an inventory cost of $40,000 the last time it was counted.

Since then, it made $80,000 in purchases and sales of $110,000. Its gross
profit was 25%. What is its estimated inventory at cost using the gross pront
method?
O A. $37,500
B. $42,500
C. $35,000
D. $40,000

User Rob Williams
by
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2 Answers

2 votes
Answer is C. Hope I helped have a good day
User Fernando Rincon
by
4.5k points
5 votes

Answer:

A. 37,500

Step-by-step explanation:

Hope this helps :)

User Puck
by
4.5k points
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