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A company's warehouse contents were destroyed by a flood on September 12. The following information was the only information that was salvaged: 1. Inventory, beginning:
| A company's warehouse contents were destroyed by a flood on September 12. The following information was the only information that was salvaged: |
| 1. | Inventory, beginning: $28,000 |
| 2. | Purchases for the period: $17,000 |
| 3. | Sales for the period: $55,000 |
| 4. | Sales returns for the period: $700 |
The company's average gross profit ratio is 35%. What is the estimated cost of the lost inventory?
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Construction accounting and financial management
Authors: Steven j. Peterson
2nd Edition
135017114, 978-0135017111
