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7. Link Company is preparing their financial statements. Gross margin is normally 40% of sales. Information taken from the company's records revealed sales of $40,000; beginning inventory of S6,000 and purchases of $30,000. The estimated amount of ending inventory would be: A) + $12,000. B) - $14,000.1 C) $16,000.41 $24,000.1 Use the following to answer questions 8: Company A Co DU Sales $40,000 $60,000 $50,000 $90,00000 Cost of Goods Soldo 24.0000 36,0000 30,000 67.50000 Gross Marging 16,0000 24,0000 20,000 22,50000 Operating Expenses 4,8000 5,4004 5,00006 30000 Net Income 11.2009 18.600415,0000 16,20000 00 8. Three of the companies are high-end department stores such as Neiman Marcus. One company is a discount retailer similar to Wal-Mart. Which company sells merchandise at comparatively lower prices? 1 A) + Company A1 Company B 1 C) Company C D) - Company D - B) 10. -- Koosiki Corporation is a merchandiser of specialized computer software for investors. His cost of goods sold for 2006 was $97,000 and sales were $374,000. The amount of merchandise on hand is $16,500 and total assets amounts to $67,800. Using this information, as appropriate, which of the following answers correctly states the average days in inventory ratio? Round to the nearest day. 1 A) 62 days B)- 16 days C) 89 days D) 6 days -Page Break

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