Callahan Computers stores its inventory in a warehouse that burned to the ground in late November, 2012. Their sales office was at a different location. In order to file a claim with their insurance, the owners ask you to estimate the inventory in the warehouse. The following information is available: The company's gross profit has historically been 40% of Net sales revenue. Estimate the value of the inventory destroyed in the fire using the gross profit method.

Question

Callahan Computers stores its inventory in a warehouse that burned to the ground in late November, 2012. Their sales office was at a different location. In order to file a claim with their insurance, the owners ask you to estimate the inventory in the warehouse. The following information is available:  The company's gross profit has historically been 40% of Net sales revenue. Estimate the value of the inventory destroyed in the fire using the gross profit method.

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The Answer of Callahan Computers stores its inventory in a warehouse that burned to the ground in late November, 2012. Their sales office was at a different location. In order to file a claim with their insurance, the owners ask you to estimate the inventory in the warehouse. The following information is available:  The company's gross profit has historically been 40% of Net sales revenue. Estimate the value of the inventory destroyed in the fire using the gross profit method.

Callahan Computers Stores Its Inventory in a Warehouse That Burned