A tsunami destroyed Kyoto Company's warehouse and all of its inventory. Kyoto's management believes that last year's gross profit percentage is a good estimate of the gross profit in the current year. Selected prior year and current year data for Kyoto is given below. Prior year ending inventory $5,097 Prior year sales $48,540 Prior year cost of goods sold $27,490 Current year net sales $28,903 Current year inventory purchases $18,005 Purchased inventory not delivered $45 Requirements 1 Calculate Kyoto's historical gross profit percentage. 2 Calculate Kyoto's estimated cost of goods sold. a. Use cell references from prior calculations, if applicable. 3 Calculate Kyoto's estimated gross profit. a. Use cell references from prior calculations, if applicable. 4 Calculate Kyoto's estimated ending inventory. a. Use cell references from prior calculations, if applicable.
A tsunami destroyed Kyoto Company's warehouse and all of its inventory. Kyoto's management believes that last year's gross profit percentage is a good estimate of the gross profit in the current year. Selected prior year and current year data for Kyoto is given below. Prior year ending inventory $5,097 Prior year sales $48,540 Prior year cost of goods sold $27,490 Current year net sales $28,903 Current year inventory purchases $18,005 Purchased inventory not delivered $45 Requirements 1 Calculate Kyoto's historical gross profit percentage. 2 Calculate Kyoto's estimated cost of goods sold. a. Use cell references from prior calculations, if applicable. 3 Calculate Kyoto's estimated gross profit. a. Use cell references from prior calculations, if applicable. 4 Calculate Kyoto's estimated ending inventory. a. Use cell references from prior calculations, if applicable.
Chapter3: Evaluation Of Financial Performance
Section: Chapter Questions
Problem 14P
Related questions
Question
Transcribed Image Text:A tsunami destroyed Kyoto Company's warehouse and all of its inventory. Kyoto's management believes that last year's gross profit
percentage is a good estimate of the gross profit in the current year. Selected prior year and current year data for Kyoto is given below.
Prior year ending inventory
$5,097
Prior year sales
$48,540
Prior year cost of goods sold
$27,490
Current year net sales
$28,903
Current year inventory purchases
$18,005
Purchased inventory not delivered
$45
Transcribed Image Text:Requirements
1 Calculate Kyoto's historical gross profit percentage.
2 Calculate Kyoto's estimated cost of goods sold.
a. Use cell references from prior calculations, if applicable.
3 Calculate Kyoto's estimated gross profit.
a. Use cell references from prior calculations, if applicable.
4 Calculate Kyoto's estimated ending inventory.
a. Use cell references from prior calculations, if applicable.
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