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A Retailer Using the Basic Stock Method Wants Its Average

Question 52

Multiple Choice

A retailer using the basic stock method wants its average monthly stock to equal 20 percent of its average monthly sales.Next year's sales are forecast at $2,400,000.Planned sales for January are $340,000.What is the January 1 planned inventory value (at retail) using the basic stock method?


A) $380,000
B) $400,000
C) $432,000
D) The answer cannot be determined from the information provided.

Correct Answer:

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