The following data were obtained from the books of JOYFUL CORPORATION: Accounts receivable, March 31, 2021 – P110,000; Accounts receivable, September 30, 2021 – P130,000; Purchases, March to September 2021 – P450,000; Inventory, March 31, 2021 – P180,000;  Average gross profit rate – 40%;   Accounts receivable turnover – 6 to 1. The Inventory at September 30, 2021 should be   ______.  A. 198,000 B. 150,000 C. 120,000 d. None of these

Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
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Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
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Chapter15: Financial Statement Analysis
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Problem 56P: The following selected information is taken from the financial statements of Arnn Company for its...
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The following data were obtained from the books of JOYFUL CORPORATION:

Accounts receivable, March 31, 2021 – P110,000; Accounts receivable, September 30, 2021 – P130,000; Purchases, March to September 2021 – P450,000; Inventory, March 31, 2021 – P180,000;  Average gross profit rate – 40%;   Accounts receivable turnover – 6 to 1.

The Inventory at September 30, 2021 should be   ______. 


A. 198,000
B. 150,000
C. 120,000
d. None of these

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