On July 1, 2013, a fire destroyed the entire inventory of Stewart Clothes, a retail store. The accounting records that were saved showed that the firm's gross profit rate was 40 percent of net sales. During the period of January 1 to July 1, 2013, the store had net sales of $345,000 and net purchases of $325,000. On December 31, 2013, the inventory was $50,000.
1. What is the estimated cost of goods sold for the period?
2. What is the estimated ending (destroyed) inventory?
3. What is the estimated gross profit for the period?

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The Answer of On July 1, 2013, a fire destroyed the entire inventory of Stewart Clothes, a retail store. The accounting records that were saved showed that the firm's gross profit rate was 40 percent of net sales. During the period of January 1 to July 1, 2013, the store had net sales of $345,000 and net purchases of $325,000. On December 31, 2013, the inventory was $50,000.
1. What is the estimated cost of goods sold for the period?
2. What is the estimated ending (destroyed) inventory?
3. What is the estimated gross profit for the period?

On July 1, 2013, a Fire Destroyed the Entire Inventory