Late on the night of August 30, 2014, an angry employee set a torch to the Family Business Ltd. warehouse, which was full of inventory. Luckily the accounting records were stored in another facility and not destroyed in the fire. Family Business Ltd. is in the process of filing a claim with its insurance company for the inventory loss due to the fire. Estimate the value of the inventory destroyed in the fire using the gross margin method.
The gross margin rate historically has been 40% of net sales

Question

Late on the night of August 30, 2014, an angry employee set a torch to the Family Business Ltd. warehouse, which was full of inventory. Luckily the accounting records were stored in another facility and not destroyed in the fire. Family Business Ltd. is in the process of filing a claim with its insurance company for the inventory loss due to the fire. Estimate the value of the inventory destroyed in the fire using the gross margin method.
  The gross margin rate historically has been 40% of net sales

Quizplus · Accepted Answer

The Answer of Late on the night of August 30, 2014, an angry employee set a torch to the Family Business Ltd. warehouse, which was full of inventory. Luckily the accounting records were stored in another facility and not destroyed in the fire. Family Business Ltd. is in the process of filing a claim with its insurance company for the inventory loss due to the fire. Estimate the value of the inventory destroyed in the fire using the gross margin method.
  The gross margin rate historically has been 40% of net sales

Late on the Night of August 30, 2014, an Angry