Question - Arrow Corporation uses the conventional retail inventory method to value its merchandise inventory. The following information is available for the current year:
|
|
Cost
|
Retail
|
|
Beginning Inventory
|
$30,000
|
$50,000
|
|
Purchases
|
$180,000
|
$250,000
|
|
Freight-In
|
$2,500
|
----
|
|
Net Markups
|
|
$8,500
|
|
Net Markdowns
|
|
$10,000
|
|
Employee Discounts
|
|
$1,000
|
|
Sales
|
|
$205,000
|
What is the cost to retail ratio?
68.88%
68.07%
70.35%
70.83%