Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Clouseau Co began trading on 1 January and, after only eight months' trading, a fire in one of its two warehouses destroyed all the inventories

Clouseau Co began trading on 1 January and, after only eight months' trading, a fire in one of its two warehouses destroyed all the inventories being held there. The owner of the business reported that sales revenue and purchases to the date of the fire were

180,000

and

155,000

respectively. Furthermore, there were still

35,000

of inventories held in the second warehouse that were not affected by the fire. The business makes a constant gross profit margin of

50

per cent on its sales.

What is the value of the inventories destroyed by the fire?

Question content area bottom

Part 1

The value of inventory destroyed is =

enter your response here

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Security And Loss Prevention An Introduction

Authors: Philip Purpura CPP Florence Darlington Technical College

7th Edition

0128117958, 9780128117958

More Books

Students also viewed these Accounting questions

Question

Find the following derivatives. d/dx (ln 2x 8 )

Answered: 1 week ago