A flood destroyed Addio Companys warehouse and all of its inventory. Addio will use the gross profit

Question:

A flood destroyed Addio Company’s warehouse and all of its inventory. Addio will use the gross profit method to determine its inventory in the warehouse at the time. Addio’s management believes that the average of the last two years’ gross profit percentage is a good estimate of the gross profit in the current year. Addio’s sales last year were $ 7,128 and $ 6,789 in the year before. Its cost of goods sold was $ 4,946 last year and $ 4,580 the year before. Addio’s prior- year reported of $ 437. Before the flood, Addio’s net sales were $ 5,702. Addio’s purchased $ 3,715 of inventory. Round percentages to one decimal place. Use the gross profit method to determine the following:
a. What is Addio’s historical gross profit percentage?
b. What it Addio’s estimated cost of goods sold?
c. What is Addio’s estimated gross profit?
d. What is Addio’s estimated ? Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =... Balance Sheet
Balance sheet is a statement of the financial position of a business that list all the assets, liabilities, and owner’s equity and shareholder’s equity at a particular point of time. A balance sheet is also called as a “statement of financial...