Skysong Pottery lost 70% of its inventory in a fire on March 25, 2020. The accounting records showed the following gross profit data for February and March. Net sales Net purchases Freight-in Beginning inventory Ending inventory February €255,000 168,130 2,465 3,825 21,420 March (to 3/25) €221.000 162,350 3,400 21,420 Skysong is fully insured for fire losses but must prepare a report for the insurance company. Your answer is correct.
Skysong Pottery lost 70% of its inventory in a fire on March 25, 2020. The accounting records showed the following gross profit data for February and March. Net sales Net purchases Freight-in Beginning inventory Ending inventory February €255,000 168,130 2,465 3,825 21,420 March (to 3/25) €221.000 162,350 3,400 21,420 Skysong is fully insured for fire losses but must prepare a report for the insurance company. Your answer is correct.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Using the gross profit rate for February, determine both the estimated total inventory and inventory lost in the fire in March.
(Round answers to 0 decimal places, e.g. 1,250.)
The estimated total inventory
Inventory lost in the fire in March €
132600
54570
Transcribed Image Text:Skysong Pottery lost 70% of its inventory in a fire on March 25, 2020. The accounting records showed the following gross profit data
for February and March.
Net sales
Net purchases
Freight-in
Beginning inventory
Ending inventory
February
€255,000
168,130
2,465
3,825
21,420
March (to 3/25)
€221,000
162,350
3,400
Your answer is correct.
21,420
Skysong is fully insured for fire losses but must prepare a report for the insurance company.
?
Compute the gross profit rate for the month of February. (Round answer to 2 decimal places, e.g. 25.16%.)
The gross profit rate for the month of February
40
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