In a perpetual inventory system, the cost of inventory sold is:
Ending inventory is equal to the cost of items on hand plus:
Under the gross method, purchase discounts taken are:
During periods when costs are rising and inventory quantities are stable, cost of goods sold will be:
Nueva Company reported the following pretax data for its first year of operations.
| Net sales | 7,450 |
| Cost of goods available for sale | 5,630 |
| Operating expenses | 1,558 |
| Effective tax rate | 25% |
| Ending inventories: | |
| If LIFO is elected | 632 |
| If FIFO is elected | 808 |
What is Nueva’s gross profit ratio if it elects FIFO?
Note: Round your answer to two decimal places e.g., 0.1234 as 12.34%.