Accounting Help?

Question

ABC Company had sales of $1,500,000 during the current period and a gross profit rate of 35%. The company’s cost of goods available for sale during the period was $1,200,000. The company’s ending inventory must have amounted to $______.

Answer 1

225000

Answer 2

That depends, did they operate on a cash basis or an accrual basis.  Also, are you talking calendar year or fiscal year for your sales period?

Answer 3

$225,000, hope this solves your problem.

Chartered Accountant in the Uk

Chris