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On June 8, 2016, a fire destroyed the warehouse of Wheat Saddlery. With the records at corporate headquarters, management was able to determine that the
On June 8, 2016, a fire destroyed the warehouse of Wheat Saddlery. With the records at corporate
headquarters, management was able to determine that the firms gross profit ratio had averaged 36% for the
past several years and that the inventory at the beginning of the year was $381,340. It also was determined
that during the year until the date of the fire, sales had totaled $647,350 and purchases totaled $321,290.
Required:
Calculate the amount of inventory loss from the fire.
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