A Macarty Company's Records Indicate the Following Information for the Year

A. Macarty Company's records indicate the following information for the year: $\begin{array}{lr}\text { Merchandise inventory, } 1 / 1 & \$ 550,000 \\\text { Purchases } & 2,250,000 \\\text { Net sales } & 3,100,000\end{array}$ On December 31 a physical inventory determined that ending inventory of $600000 was in the warehouse. A. Macarty's gross profit on sales has remained constant at 30%. A. Macarty suspects some of the inventory may have been taken by some new employees. At December 31 what is the estimated cost of missing inventory?

A) $30000
B) $42000
C) $180000
D) $600000

Correct Answer:

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