The following information pertains to the Godfrey Company for the six months ended June 30 of the current year:
|
Merchandise inventory, January 1 |
$ 700,000 |
|
Purchases |
5,000,000 |
|
Freight-in |
400,000 |
|
Net sales |
6,000,000 |
Gross profit is normally 25% of sales. What is the estimated amount of inventory on hand at June 30?
- $100,000.
- $1,600,000.
- $2,100,000.
- $4,600,000.