The records of Florida Tool Shop revealed the following information related to inventory destroyed in Hurricane Frances:

Question:

Inventory, beginning of period $300,000

Purchases to date of hurricane 140,000

Net sales to date of hurricane 885,000

Gross profit ratio 55%

The company needs to file a claim for lost inventory with its insurance company. What is the estimated value of the lost inventory?

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Financial Accounting: A Business Process Approach

ISBN: 978-0136115274

3rd edition

Authors: Jane L. Reimers

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Question Posted: Sep 01, 2014 12:36 PM

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The records of Florida Tool Shop revealed the following information related to inventory destroyed in Hurricane Frances:

Question:

Step by Step Answer:

Cost of Goods Sold 1 gross profit ratio x Sales 398250 45 x 885...View the full answer

Financial Accounting: A Business Process Approach

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