ABC has no opening inventory. During the year, it buys 2000 microwave ovens at $300 each and sells 1500 of them for $500 each. Cash operating expenses are $40 000 and it owes wages of $10 000 at year-end. What is accrual profit for the year?
A) $100 000
B) $110 000
C) $250 000
D) None of the above

Question

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The Answer of ABC has no opening inventory. During the year, it buys 2000 microwave ovens at $300 each and sells 1500 of them for $500 each. Cash operating expenses are $40 000 and it owes wages of $10 000 at year-end. What is accrual profit for the year?
A) $100 000
B) $110 000
C) $250 000
D) None of the above

ABC Has No Opening Inventory