of 15.00

Beginning inventory

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The following data concerning the retail inventory method are taken from the financial records of Welch Company.

Cost

$49,000

224,000

6,000

Retail

$70,000

320,000

20,000

14,000

336,000

Finish attempt

Purchases

Freight-in

Net markups

Net markdowns

Sales

Answer the following questions. For numbers, do not use commas (,) nor dollar signs (5) nor percentage sign (%).

1. The cost of ending inventory (to the nearest $100 using the cost to retail method is $

2. If the ending inventory is to be valued at approximately the lower-of-cost-or net realizable value, what ratio should be used as the cost to retail ratio to the nearest 1%. %

3. If the foregoing figures are verified and a count of the ending inventory reveals that merchandise actually on hand amounts to $54,000 at retail, should the business realize a gain or a loss? Choose... in the amount of (rounded to the nearest $10) $

at retail prices and at cost (rounded to the nearest $10) S