Executive Fashions sold four-sevenths of its inventory at cost in a bankruptcy sale. The remainder was sold to liquidators for $6,700 representing 45% of the cost of the goods.
a) What was the original cost of the inventory that was sold to the liquidators?
b) What were the proceeds from the bankruptcy sale?

Question

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The Answer of Executive Fashions sold four-sevenths of its inventory at cost in a bankruptcy sale. The remainder was sold to liquidators for $6,700 representing 45% of the cost of the goods.
a) What was the original cost of the inventory that was sold to the liquidators?
b) What were the proceeds from the bankruptcy sale?

Executive Fashions Sold Four-Sevenths of Its Inventory at Cost in a Bankruptcy