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 $).

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A: Present value is the current value of a future sum of money discounted at the time value of money.

Q: Define Sales revenue.

A:

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Q: What is purchase returns?

A:

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A: The answer is explained as follows:

Inventory Valuation

Before discussing the topic inventory valuation let’s discuss the meaning of inventory. In accounting, inventory is also known as stock. Inventory means all the finished goods, materials, merchandise that a business holds for the purpose of selling it in the market with the motive of earning profit.