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On January 1, a store had inventory of $48,000. January purchases were $49,000 and January sales were $100,000. On February 1 a fire destroyed most
On January 1, a store had inventory of $48,000. January purchases were $49,000 and January sales were $100,000. On February 1 a fire destroyed most of the inventory. The rate of gross profit was 25% of cost. Merchandise with a selling price of $6,500 remained undamaged after the fire. Compute the amount of the fire loss, assuming the store had no insurance coverage.
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