To the nearest thousand,the estimated ending inventory at cost is (round cost-to-retail ratio to whole percentage):
A)$16,000.
B)$15,000.
C)$13,000.
D)$19,000.

Question

Quizplus · Accepted Answer

The cost-to-retail ratio is 80%, which means that the cost of the inventory is 80% of the retail value. The estimated ending inventory at cost is therefore $20,000 x 0.80 = $16,000.

To the Nearest Thousand,the Estimated Ending Inventory at Cost Is