even === You are the warehouse manager for a kitchen supplies store. On a Sunday in May, you receive a phone call from the owner. He states that the entire building and contents were destroyed by fire. Fur the police report and the insurance claim, the owner has asked you to estimate the value of the lost inventory. Your records, which luckily were backed up on the hard drive of your home cumiputer, indicate that at the time of the fire, the net sales to date were $616,100 and the purchases were $234,600. The beginning inventory on January 1 was $316,000. For the past three years, the company has operated at a gross margin of 60%. Use the gross profit method to calculate your answer (in $).
even === You are the warehouse manager for a kitchen supplies store. On a Sunday in May, you receive a phone call from the owner. He states that the entire building and contents were destroyed by fire. Fur the police report and the insurance claim, the owner has asked you to estimate the value of the lost inventory. Your records, which luckily were backed up on the hard drive of your home cumiputer, indicate that at the time of the fire, the net sales to date were $616,100 and the purchases were $234,600. The beginning inventory on January 1 was $316,000. For the past three years, the company has operated at a gross margin of 60%. Use the gross profit method to calculate your answer (in $).
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Inventory
Transcribed Image Text:tegeleven
JEFLA
You are the warehouse manager for a kitchen supplies store. On a Sunday in May, you receive a phone call from the owner. He states that the entire building and contents were destroyed by fire. Fur the police report and the insurance claim, the
owner has asked you to estimate the value of the lost inventory. Your records, which luckily were backed up on the hard drive of your home curriputer, indicate that at the time of the fire, the net sales to date were $616,100 and the purchases were
$234,600. The beginning inventory on January 1 was $316,000. For the past three years, the company has operated at a gross margin of 60%. Use the gross profit method to calculate your answer (in $).
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