QUESTION 33 A perpetual inventory system. O Updates the amount in inventory throughout the period. O Uses the purchases account to record inventory bought during a period O Updates the amount in inventory only at the end of a period. O is not as accurate in comparison to a periodic inventory system QUESTION 34 Chalmers and Company sells basketballs signed by KU athletes to avid fans Chalmers has the following information related to inventory beginning inventory of $20.000 sales revenue of $300,000 purchases of $40,000, and a historical gross margin percentage of 85% Using the gross margin method what is the estimate of ending inventory? O $75.000 O $60.000 O S45.000 $15.000 QUESTION 35 Which of the following statements is false related to financial ratios? O Companies can only use one financial ratio to analyze their business As discussed in the inventory video lecture. Walmart turns their inventory over quicker than Target based on the inventory turnover ratio O The inventory turnover ratio is an indication of how fast a company can sell its inventory The accounts receivable turnover ratio is an indication of how fast a company collects money from customers. QUESTION 36 A company is planning to relocate and decides to sell their existing store building to an outside customer They purchased the building to yeo s ago for $200 000 To date, the company has recorded depreciation in the amount of $5.000 every year. The buyer is willing to pay $225.000 for this building Det mine the amount of the gain recognized by the seller of the building on the date of sale O $75.000 550.000 O $200.000 O $25.000 QUESTION 37 On April 1 BNSF purchased a new locomotive for $2.000.000 They estimate that the locomotive has a useful life of 20 years and a salvage Cresidual value at the end of the twenty years of $500.000. Using the Straight Line method what is depreciation expense at the end of the first year? $75.000 O $18.750 O $56.250 O $50.000