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Sagot :
The ending inventory for the current year for Aaron Rogers Corporation is 20% of sales.
S.no. Gross profit % Sales gross profit Cost Goods Available for sale Ending inventory
A) 45% of sales 2,500,000 1,125,000 1,375,000 2,100,000 725,000
B) 60% of cost i.e 37.50 of Sales 2,500,000 937,500 1,562,500 2,100,000 537,500
C) 35% of sales 2,500,000 875,000 1,625,000 2,100,000 475,000
D) 25% of cost i.e 20% of Salea 2,500,000 500,000 2,000,000 2,100,000 100,000
Note : 60% of cost = 60 / 160 on sales = 37.50% on sales
25% of cost = 25 / 125 on sales = 20% on sales
Inventory includes both the raw materials needed in production and the finished commodities that are offered for sale. Since inventory turnover is one of the main means of generating income and, consequently, profits for the firm's shareholders, it is one of the most significant assets a company may have. Raw materials, work-in-progress, and finished goods are the three categories of inventory. On a company's balance sheet, it is listed as a current asset.
For any business, inventory is a crucial asset. It is described as the assortment of raw materials or completed products that a corporation keeps on hand for everyday business operations.
Learn more about inventory here
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