= Homework: Week TWO Question 22, P10-12 (si... Part 1 of 10 HW Score: 75.03%, 16.51 of 22 points Score: 0 of 1 Save In 2018, Standard Company experienced a major casualty loss. The roof of its warehouse collapsed in an ice storm and destroyed its entire inventory. The company began the year with inventory of $500. It made purchases of $5,100 but returned 560 worth of merchandise. Sales prior to the ice storm were $8,500. Standard must use the gross profit method to determine inventory on hand on the date of the casualty. The following is an excerpt of its income statement for the last three years. E: (Click the icon to view the data.) Read the requirements C. Requirement a. Assume that Standard uses the most recent three years of net sales and cost of goods sold to determine its historical gross profit. What are estimated cost of goods sold, estimated gross profit, and estimated ending inventory? Begin by calculating the gross profit percentage for each of the last three years. (Round the gross profit percentage to one decimal place, X.X%.) 2015 2016 2017 Gross Profit Percentage % - > Requirements Data Table a. 2016 2017 Net Sales $ 2.000 $ 8.000 that Standa e most recent three years of sales and cost of goods sold to determine its historical gross profit. What are estimated cost of goods sold, estimated gross profit, and estimated ending inventory? b. Assume that Standard uses the most recent two years of net sales and cost of goods sold to determine its historical gross profit. What are estimated cost of goods sold, estimated gross profit, and estimated ending inventory? c. Comment on the differences in estimated cost of goods sold, estimated gross profit, and estimated ending inventory from parts (a) and (b). 3,000 $ 1,149 860 3,000 En 200 300 800 Cost of Goods Sold General and Administrative Expense Depreciation Expense Operating Income 350 200 425 $ 590 $ 1,351 $ 3,775 12:42 AM H Type here to search o 79F Clear 8/19/2021