A tsunami destroyed Kyoto Companys warehouse and all of its inventory Kyotos prior year balance sheet reported ending inventory of $ 5,097 Kyotos management believes that last years gross profit percentage is a good estimate of the gross profit in the current year Kyotos sales last year were $ 48,5...

a Kyotos historical gross profit percentage is computed as follows Pr ...

A tsunami destroyed Kyoto Companys warehouse and all of its inventory. Kyotos prior- year balance sheet reported

Question:

A tsunami destroyed Kyoto Company’s warehouse and all of its inventory. Kyoto’s prior- year reported of $ 5,097. Kyoto’s management believes that last year’s gross profit percentage is a good estimate of the gross profit in the current year. Kyoto’s sales last year were $ 48,540 and its cost of goods sold was $ 27,490. Before the tsunami, Kyoto’s net sales were $ 28,903. Kyoto’s purchased $ 18,005 of inventory. Of the inventory purchased, $ 45 had not yet been delivered to Kyoto. Round percentages to one decimal place. Use the gross profit method to determine the following:
a. What is Kyoto’s historical gross profit percentage?
b. What is Kyoto’s estimated cost of goods sold?
c. What is Kyoto’s estimated gross profit?
d. What is Kyoto’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...