can someone please elaborate the answer to this e 6-21 A company...

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Accounting

can someone please elaborate the answer to this image
e 6-21 A company that uses the retail method determines that inventory at retail prices is Rp.675,000,000. If the cost to retail price ratio is 80%, what amount of inventory will be reported in the financial statements? 540.000.000 - 675-000 000 x 80%

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