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Howard's Supply Co

Question 59

Multiple Choice

Howard's Supply Co. suffered a fire loss on April 20, 2018. The company's last physical inventory was taken January 30, 2018, at which time the inventory totaled $220,000. Sales from January 30 to April 20 were $600,000 and purchases during that time were $450,000. Howard's consistently reports a 30% gross profit. The estimated inventory loss is:


A) $490,000.
B) $238,000.
C) $250,000.
D) None of these answer choices are correct.

Correct Answer:

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