A company's store was destroyed by an earthquake on February 10 of the current year.The only information for the current period that could be salvaged included the following:
$$\begin{array} { | l | l | }
\hline \text { Beginning inventory, January 1: } & \$ 44,000 \
\hline \text { Purchases to date: } & \$ 198,000 \
\hline \text { Sales to date: } & \$ 310,000 \
\hline
\end{array}$$ Historically,the company's gross profit ratio has been 30%.Estimate the value of the destroyed inventory using the gross profit method.

Question

A company's store was destroyed by an earthquake on February 10 of the current year.The only information for the current period that could be salvaged included the following:
 $$\begin{array} { | l | l | } 
\hline \text { Beginning inventory, January 1: } & \$ 44,000 \
\hline \text { Purchases to date: } & \$ 198,000 \
\hline \text { Sales to date: } & \$ 310,000 \
\hline
\end{array}$$ Historically,the company's gross profit ratio has been 30%.Estimate the value of the destroyed inventory using the gross profit method.

Quizplus · Accepted Answer

The Answer of A company's store was destroyed by an earthquake on February 10 of the current year.The only information for the current period that could be salvaged included the following:
 $$\begin{array} { | l | l | } 
\hline \text { Beginning inventory, January 1: } & \$ 44,000 \
\hline \text { Purchases to date: } & \$ 198,000 \
\hline \text { Sales to date: } & \$ 310,000 \
\hline
\end{array}$$ Historically,the company's gross profit ratio has been 30%.Estimate the value of the destroyed inventory using the gross profit method.

A Company's Store Was Destroyed by an Earthquake on February