Question
On July 8, a fire destroyed the entire merchandise inventory on hand of Larrenaga Wholesale Corporation. The following information is available: Sales, January 1 through
On July 8, a fire destroyed the entire merchandise inventory on hand of Larrenaga Wholesale Corporation. The following information is available:
| Sales, January 1 through July 8 | $ | 681,000 | |
| Inventory, January 1 | 131,000 | ||
| Purchases, January 1 through July 8 | 642,000 | ||
| Gross profit ratio | 24 | % | |
What is the estimated inventory on July 8 immediately prior to the fire?
Multiple Choice
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$517,560.
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$154,080.
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$257,240.
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$255,440.
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Financial Accounting
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso
3rd Edition
0471372668, 978-0471372660
