The Following Information Appears on the Income Statement of the Davis

The following information appears on the income statement of the Davis Company at the end of the year. $$\begin{array} { l r } \text { Sales } & \$ 500,000 \\\text { Cost of Goods Manufactured } & 360,000 \\\text { Gross Profit on Sales } & 160,000 \\\text { Beginning finished goods inventory } & 120,000\end{array}$$ Ending finished goods inventory was:

A) $140,000.
B) $160,000.
C) $200,000.
D) $220,000. Cost of Goods Sold = 500,000 - 160,000 = 340,000.
Ending finished goods inventory = 120,000 + 360,000 - 340,000 = 140,000.