True/False Questions (2 pt each) 11. On February 2, 2013, a fire destroys the entire inventory of Blumer Co. The following information was to stored in a different location from the fire-damaged store: accounting records $230,000; beginning inventory, $40,000; average gross profit percentage during the past five years, 309%. Based on the above information, indicate whether each of the following statements is true or false. Purchases, $130,000, Sales a. The cost of goods available for sale is $230,000. b. The cost of goods sold as a percent of sales is 70%. c. The estimated cost of goods sold is $170,000. d. Estimated inventory lost in the fire is $9,000. e. Estimated gross profit is $69,000. Indicate whether each of the following statements is true or false. 12. terest given up to use one's own money to buy inventory is often called "inventory loss." still a "cost" involved with financing the inventory. inventory. avoid inventory-financing cost. b. Even if a firm buys inventory with its own money, rather than by borrowing, there is c. As much as possible, businesses should reduce the time for which goods stay in d. Buying inventory on account (with no interest charged) is always the best way to e. One way to reduce inventory-financing cost is to offer sales discounts to customers