Question
A hurricane damaged Company Js warehouse. The company has the following records: Inventory, January 1 $25,000 Purchases, January 1 through May 1 200,000 Sales, January
A hurricane damaged Company Js warehouse. The company has the following records:
| Inventory, January 1 | $25,000 | |
| Purchases, January 1 through May 1 | 200,000 | |
| Sales, January 1 through May 1 | 240,000 | |
| Inventory not damaged by flood | 10,000 | |
| Gross profit percentage on sales | 50% |
What amount of inventory was lost in the flood?
- A. $110,000
- B. $140,000
- C. $95,000
- D. $55,000
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The Internal Auditing Handbook
Authors: K. H. Spencer Pickett
3rd Edition
0470518715, 978-0470518717
