H. Hunter Company's records indicate the following information for the year: On December 31, a physical inventory determined that ending inventory of $500,000 was in the warehouse. H. Hunter's gross profit on sales has remained constant at 30%. H. Hunter suspects some of the inventory may have been taken by some new employees. At December 31, what is the estimated cost of missing inventory?
A) $60,000
B) $100,000
C) $150,000
D) $1,340,000

Question

H. Hunter Company's records indicate the following information for the year:  On December 31, a physical inventory determined that ending inventory of $500,000 was in the warehouse. H. Hunter's gross profit on sales has remained constant at 30%. H. Hunter suspects some of the inventory may have been taken by some new employees. At December 31, what is the estimated cost of missing inventory?
A) $60,000 
B) $100,000 
C) $150,000 
D) $1,340,000

Quizplus · Accepted Answer

The Answer of H. Hunter Company's records indicate the following information for the year:  On December 31, a physical inventory determined that ending inventory of $500,000 was in the warehouse. H. Hunter's gross profit on sales has remained constant at 30%. H. Hunter suspects some of the inventory may have been taken by some new employees. At December 31, what is the estimated cost of missing inventory?
A) $60,000 
B) $100,000 
C) $150,000 
D) $1,340,000

H Hunter Company's Records Indicate the Following Information for the Year