Question
You are called by Tim Duncan ofSarasotaCo. on July 16 and asked to calculate claim for insurance as a result of a theft that took
You are called by Tim Duncan ofSarasotaCo. on July 16 and asked to calculate claim for insurance as a result of a theft that took place the night before. You suggest that an inventory be taken immediately. The following data are available.
Inventory, July 1$38,200Purchasesgoods placed in stock July 1-1580,300Sales revenuegoods delivered to customers (gross)124,800Sales returnsgoods returned to stock4,400
Your client reports that the goods on hand on July 16 cost $29,400, but you determine that this figure includes goods of $5,500received on a consignment basis. Your past records show that sales are made at approximately30% over cost. Duncan's insurance covers only goods owned.
Compute the claim against the insurance company.
Claim against the insurance company?
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Financial Statement Fraud Prevention And Detection
Authors: Zabihollah Rezaee, Richard Riley
2nd Edition
0470543205, 9780470543207
