A business has sales of $100,000 during a year. Opening inventory was $15,000 and purchases were $75,000. If the gross profit was $15,000，what was closing inventory? A $5,000 B $10,000 C $25,000 D $55,000
Sales are $100,000 and gross profit $15,000. So cost of sales is $85,000. Opening inventory plus purchases total $90,000. So closing inventory must be $5,000 ($90,000 - $5,000 = $85,000).
