ProofSmart Inc., a supplier of home insulation materials, was burned down in a recent fire. From the remains of what used to be the accounting ledger, the following information was recovered: Inventory Gross Margin Inventory Turns $38,000,000 $43,000,000 $85,000,000 $66,000,000 2006 $2,367,121 $318,000 42% 11 Prior to the fire, ProofSmart saw a sales growth of 48% in 2007, a record performance for the 18-year-old company. (NOTE: Gross margin is defined as 1 - (COGS /Sales).) What was the sales for 2007? Choose the answer closest to the correct answer. 2007 $2,418,257 45% [unreadable] Cannot be determined from the data given

ProofSmart Inc., a supplier of home insulation materials, was burned down in a recent fire. From the remains of what used to be the accounting ledger, the following information was recovered: Inventory Gross Margin Inventory Turns $38,000,000 $43,000,000 $85,000,000 $66,000,000 2006 $2,367,121 $318,000 42% 11 Prior to the fire, ProofSmart saw a sales growth of 48% in 2007, a record performance for the 18-year-old company. (NOTE: Gross margin is defined as 1 - (COGS /Sales).) What was the sales for 2007? Choose the answer closest to the correct answer. 2007 $2,418,257 45% [unreadable] Cannot be determined from the data given

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter1: Introduction To Managerial Accounting

Section: Chapter Questions

Problem 2CMA

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ProofSmart Inc., a supplier of home insulation materials, was burned down in a recent fire. From the remains of what used to be the accounting ledger, the following information was recovered: Inventory Gross Margin Inventory Turns 13 10 11 14 2006 $2,367,121 42% 11 Prior to the fire, ProofSmart saw a sales growth of 48% in 2007, a record performance for the 18-year-old company. (NOTE: Gross margin is defined as 1 - (COGS/ Sales).) What was the inventory turns for 2007? Choose the answer closest to the correct answer. 15 12 2007 $2,418,257 45 % [unreadable] Cannot be determined from the given data. None of these 2
On 1st Jan 2006, a business had inventory of $19,000. During the month, sales totalled $32,500 and purchases $24,000. On 31st Jan 2006 a fire destroyed some of the inventory. The undamaged goods in inventory were valued at $11,000. The business operates with a standard gross profit margin of 30%. Based on this information, what is the cost of the inventory destroyed in the fire?
A fire destroyed a warehouse of the Goren Group, Inc., on May 4, 2016. Accounting records on that date indicated the following: Merchandise inventory, January 1, 2016 Purchases to date $1,900,000 5,800,000 Freight-in Sales to date 400,000 8,200,000 The gross profit ratio has averaged 20% of sales for the past four years. Required: Use the gross profit cost of the inventory destroyed in the fire. hod to estimate
Coastal Shores Inc. (CSI) was completely destroyed by Hurricane Fred on August 5, 2013. At January 1, CSI reported an inventory of $170,000. Sales from January 1, 2013, to August 5, 2013, totaled $480,000 and purchases totaled $195,000 during that time. CSI normally shows a gross profit percentage of 40%. The estimated inventory loss due to Hurricane Fred would be:
Lily Company needs to determine the amount of inventory in its warehouse at the time that an earthquake destroyed it. Lily's gross profit percentage averaged 27% over the last three years. Lily began the current year with inventory of $840,000. Its net purchases were $4,387,000 and net sales were $3,970,000 during the year before the earthquake occurred. Use the gross profit method to estimate the inventory on hand on the date of the earthquake. Identify the appropriate formula and then calculate Lily's estimated ending inventory. Estimated ending inventory !!
On 1st Nov 2020, a business had inventory of $380,000. During the month, sales totalled $650,000 and purchases $480,000. On 30th Nov 2020 a flood destroyed some of the inventory. The undamaged goods in inventory were valued at $220,000. The business operates with a standard gross profit margin of 25%.Based on this information, what is the cost of the inventory destroyed in the flood?
The financial records of Richard Co. were destroyed by fire at the end of 1999 fortunately the controller had keep certain statistical data related to the income statement as presidented below. 1-The beginning inventory was 92,000 and decreased 20% during the current year. 2- Sales discounts 16,400 3-Interest expenses was 19,500 4-The income tax rate is 30% 5-Cost of goods sold 450,000 6-Administrative expenses are 20% of cost of goods sold. 7-Gross profit was 30% of cost of goods sold. 8-Four-fifths of operating expenses relate to sales activities. Ins From the foreging information prepare income statement with ( Multiple- step form ) for the year ended in 31/12/1999.
Over the past 3 years, the gross profit rate for Jini Company was 42%. Last week a fire destroyed all Jini’s inventory. Beginning inventory $ 6,350 Net purchases 64,700 Net sales at retail 49,700 Using the gross profit method, estimate the cost of inventory destroyed in the fire, given the above facts that were recorded in a fireproof safe. inventory destroyed?
A fire destroyed a warehouse of the Goren Group, Inc., on May 4, 2021. Accounting records on that date indicated the following: Merchandise inventory, January 1, 2021 $1,900,000Purchases to date 5,800,000Freight-in 400,000Sales to date 8,200,000 The gross profit ratio has averaged 20% of sales for the past four years.Required:Use the gross profit method to estimate the cost of the inventory destroyed in the fire.
For several years, Berry Limited has marked its purchases up by 33.33% and has consistently realised the expected rate of gross profit. Its inventory was insured against fire for R40 000, the policy being subject to the average clause. A fire took place on 25 September and all inventory was destroyed except for items which had cost R10 000 which were salvaged in an undamaged condition.The following information was obtained from the firm’s ledger: RInventory on hand at cost - 1 January 48 000Purchases – 1 January to 25 September 182 000Sales – 1 January to 25 September 240 000The business has a financial year which ends on 31 December.Required:5.1 Calculate:5.1.1 Cost of the inventory destroyed in the fire. (5)5.1.2 The amount to be claimed from the insurance company. (2)5.1.3 Calculate the amount of inventory destroyed and the amount of the insurance claim assuming that the company had always earned a gross profit of 33.33%. (8)
On 1 September 20X6, a business had inventory of $380,000. During the month, sales totalled $650,000 and purchases $480,000. On 30 September 20X6 a fire destroyed some of the inventory. The undamaged goods in inventory were valued at $220,000. The business operates with a standard gross profit margin of 30%. Based on this information, what is the cost of the inventory destroyed in the fire?
A fire destroyed a warehouse of the Goren Group, Incorporated, on May 4, 2024. Accounting records on that date indicated the following: Merchandise inventory, January 1, 2024 Purchases to date Freight-in Sales to date $ 1,940,000 5,840,000 Estimated loss from fire 440,000 8,600,000 The gross profit ratio has averaged 20% of sales for the past four years. Required: Use the gross profit method to estimate the cost of the inventory destroyed in the fire.