Olivia Inc. presented the following data: Merchandise Inventory on January 1, 2020 - $ 550,000 Purchases from January 1, 2020 to December 31, 2020 - 2,250,000 Sales from January 1, 2020 to December 31, 2020 - 3,000,000 Physical Inventory determined that ending inventory of $600,000 was in the warehouse on December 31, 2020. Olivia Inc.'s gross profit on sales has remained constant at 30%. Olivia is suspecting that some of the inventory may have been taken by some new employees. What is the estimated cost of missing inventory on December 31, 2020?
Olivia Inc. presented the following data: Merchandise Inventory on January 1, 2020 - $ 550,000 Purchases from January 1, 2020 to December 31, 2020 - 2,250,000 Sales from January 1, 2020 to December 31, 2020 - 3,000,000 Physical Inventory determined that ending inventory of $600,000 was in the warehouse on December 31, 2020. Olivia Inc.'s gross profit on sales has remained constant at 30%. Olivia is suspecting that some of the inventory may have been taken by some new employees. What is the estimated cost of missing inventory on December 31, 2020?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Olivia Inc. presented the following data:
Merchandise Inventory on January 1, 2020 - $ 550,000
Purchases from January 1, 2020 to December 31, 2020 - 2,250,000
Sales from January 1, 2020 to December 31, 2020 - 3,000,000
Physical Inventory determined that ending inventory of $600,000 was in the warehouse on December 31, 2020. Olivia Inc.'s gross profit on sales has remained constant at 30%. Olivia is suspecting that some of the inventory may have been taken by some new employees. What is the estimated cost of missing inventory on December 31, 2020?
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