Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the showroom of sundale furniture was flooded due

The showroom of Sundale Furniture was flooded due to a recent cyclone and its inventory...

60.1K

Verified Solution

Question

Accounting

The showroom of Sundale Furniture was flooded due to a recent cyclone and its inventory was totally destroyed. Their accounting records were damaged but the following information was salvaged.

Sales revenue (to date this period) $280 000 Beginning inventory (at retail) $50 000 Purchases (to date this period at retail) $430 000 Historical gross profit percentage 40%

Assuming the historical gross profit ratio is maintained the estimated cost of inventory lost in the flood is:

Group of answer choices

a. $80 000

b. $200 000

c. $60 000

d. $172 000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

You borrowed $100,000 at an interest rate of 3.8%, with constant annual payments of both principal...

Finance
Q

A study of king penguins looked for a relationship between how deep the penguins dive to...

Statistics
Q

Find the area and perimeter of the following 3x Area 10 15x Perimeter 3x 5...

Geometry
Q

65

Geometry
Q

Solve the system of equations x y 5 x 5y 9 x O 1 2...

Algebra
Q

problem 2 Nora Beck is 80 and has an IRA with a fair market value...

Algebra
Q

Ogarithmic function 3 S 10 Shift Scroll to zoom Shift Drag to pan 8 10...

Algebra
Q

!!!

Accounting
Q

The following are financial statements of Ohara Company. was $92,000. The cash used for dividends...

Accounting
Q

I need help figuring out how to calculate the amount of support that qualifies as...

Accounting
Q

1. Compute the activity rate for each activity cost pool

Accounting
Q

24. An electronics store had sales of $4,598,999, with markdowns of 25% and shortages of...

Accounting