North Bay Company suffered a loss of its inventory on March 28 due to a fire in its warehouse. As a basis for filing a claim with its insurance company, North Bay Company developed the following information: The company has experienced an average gross profit margin of 30% in the past and this margin appears to be appropriate in the current period.
Instructions
Using the gross profit method, prepare an estimate of the cost of the inventory destroyed by fire on March 28. Show all calculations in good form.

Question

North Bay Company suffered a loss of its inventory on March 28 due to a fire in its warehouse. As a basis for filing a claim with its insurance company, North Bay Company developed the following information:  The company has experienced an average gross profit margin of 30% in the past and this margin appears to be appropriate in the current period.
Instructions
Using the gross profit method, prepare an estimate of the cost of the inventory destroyed by fire on March 28. Show all calculations in good form.

Quizplus · Accepted Answer

The Answer of North Bay Company suffered a loss of its inventory on March 28 due to a fire in its warehouse. As a basis for filing a claim with its insurance company, North Bay Company developed the following information:  The company has experienced an average gross profit margin of 30% in the past and this margin appears to be appropriate in the current period.
Instructions
Using the gross profit method, prepare an estimate of the cost of the inventory destroyed by fire on March 28. Show all calculations in good form.

North Bay Company Suffered a Loss of Its Inventory on March