Clouseau Co began trading on 1 January and, after only eight months' trading, a fire...
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Accounting
Clouseau Co began trading on 1 January and, after only eight months' trading, a fire in one of its two warehouses destroyed all the inventories being held there. The owner of the business reported that sales revenue and purchases to the date of the fire were
180,000
and
155,000
respectively. Furthermore, there were still
35,000
of inventories held in the second warehouse that were not affected by the fire. The business makes a constant gross profit margin of
50
per cent on its sales.
What is the value of the inventories destroyed by the fire?
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Part 1
The value of inventory destroyed is =
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