Question
A tsunami destroyed Kawaguchi Company's warehouse and all of its inventory.Kawaguchi's prior year balance sheet reported inventory of $ 5295.Kawaguchi's management believes that last year
A tsunami destroyed Kawaguchi Company's warehouse and all of its inventory.Kawaguchi's prior year balance sheet reported inventory of $ 5295.Kawaguchi's management believes that last year gross profit percentage is A good estimate of the gross profit in the current year.Kawaguchi's sales last year were $ 43300 and its cost of good sold was $ 25980.Before the tsunami, Kawaguchi's net sales were $ 23100.Kawaguchi's purchased $ 17843 of inventory purchased, $ 293 had not yet been delivered to Kawaguchi's.Use the gross profit method to determine the following:a.what is Kawaguchi's historical gross profit percentage? b.what is Kawaguchi's estimated cost of good sold? c.what is Kawaguchi's estimated gross profit? d.what is Kawaguchi's estimated ending inventory?
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