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Lazarus Inc. is a wholesaler with operations throughout Ohio. On June 15, Lazarus's warehouse facility was damaged via flood. Lazarus uses the gross profit method to determine the amount of the loss. Lazarus generally charges a mark-up of 40% on their cost of sales to determine their sales price. Assuming $2,000 of inventory is still on hand, what was the loss that occurred due to the flood? Inventory (1/1) Inventory (4/1) Purchases from 4/1 to 6/15 $0 O $21,000 Net sales from 4/1 to 6/15 120,000 $7,200 $9,200 15,000 O $23,000 20,000 75,000

Lazarus Inc. is a wholesaler with operations throughout Ohio. On June 15, Lazarus's warehouse facility was damaged via flood. Lazarus uses the gross profit method to determine the amount of the loss. Lazarus generally charges a mark-up of 40% on their cost of sales to determine their sales price. Assuming $2,000 of inventory is still on hand, what was the loss that occurred due to the flood? Inventory (1/1) Inventory (4/1) Purchases from 4/1 to 6/15 $0 O $21,000 Net sales from 4/1 to 6/15 120,000 $7,200 $9,200 15,000 O $23,000 20,000 75,000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Lazarus Inc. is a wholesaler with operations throughout Ohio. On June 15, Lazarus's warehouse facility was damaged via flood. Lazarus uses the gross profit method to determine the amount of the loss. Lazarus generally charges a mark-up of 40% on their cost of sales to determine their sales price. Assuming $2,000 of inventory is still on hand, what was the loss that occurred due to the flood? Inventory (1/1) Inventory (4/1) Purchases from 4/1 to 6/15 $0 $21,000 Net sales from 4/1 to 6/15 120,000 $7,200 $9,200 15,000 $23,000 20,000 75,000
Transcribed Image Text:Lazarus Inc. is a wholesaler with operations throughout Ohio. On June 15, Lazarus's warehouse facility was damaged via flood. Lazarus uses the gross profit method to determine the amount of the loss. Lazarus generally charges a mark-up of 40% on their cost of sales to determine their sales price. Assuming $2,000 of inventory is still on hand, what was the loss that occurred due to the flood? Inventory (1/1) Inventory (4/1) Purchases from 4/1 to 6/15 $0 $21,000 Net sales from 4/1 to 6/15 120,000 $7,200 $9,200 15,000 $23,000 20,000 75,000
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