Answer:
estimated inventory on July 8 = $280000
so correct option is d. $280,000
Explanation:
given data
sale = $700,000
Inventory = $130,000
Purchase = $640,000
to find out
estimated inventory on July 8
solution
first we get here total available inventory for sales that is
Total Available inventory for sales = Inventory + Purchase ...........1
put here value
Total Available inventory for sales = $130,000 + $640,000
Total Available inventory for sales = $770,000
so now we get Inventory sols that is
Inventory = (Sales - 30% of sales) ....................2
Inventory = $700000 - ( 0.30 × $700000 )
Inventory = $490,000
so now we get here estimated inventory on July 8 that is express as
estimated inventory = Total Available inventory for sales - Inventory .........3
estimated inventory = $770,000 - $490,000
estimated inventory = $280000
so correct option is d. $280,000
