The Sahara Company's inventory was partially destroyed on June 4, 2016, when its warehouse caught on fire early in the morning. Inventory that had a cost of $8,000 was saved. The accounting records, which were located in a fireproof vault, contained the following information: Sales (1/1/16 through 6/3/16) $260,000 Purchases (1/1/16 through 6/3/16) 190,000 Inventory (1/1/16) 40,000 Gross profit ratio 30% of cost Using the gross profit method, what is the estimated cost of the inventory destroyed by the fire? a.$40,000 b.$222,000 c.$38,000 d.$48,000

Q: On February 26, a hurricane destroyed the entire inventory stored in a warehouse owned by the…

A: Given,  Gp ratio = 40% = 100 * Gross profit / Net sales Purchase = 420000 Net sales = 620000…

Q: Data table Inventory, December 1 Transactions December 1-15: Purchases Purchases discounts Purchase…

A: COGS is an important financial indicator since it has a direct influence on a company's gross…

Q: On April 15, a bad day in many ways, a fire destroyed the entire inventory of a local retail store,…

A: The difference between the sales and the cost of goods sold is called gross profit. Gross profit…

Q: Adams Corporation estimates that it lost $75,000 in inventory from a recent flood. The following…

A: Formula to calculate gross profit ratio:

Q: On February 26, a hurricane destroyed the entire inventory stored in a warehouse owned by the…

A: Net purchases and beginning inventories are included in the cost of commodities that are offered for…

Q: Southern Distributors, Incorporated, supplies ice cream shops with various toppings for making…

A: Calculating Smith Distributors Inc.'s inventory loss using the gross profit method.When a natural or…

Q: On July 8, a fire destroyed the entire merchandise inventory on hand of Larrenaga Wholesale…

A: The ending inventory is calculated as difference between cost of goods available for sale and cost…

Q: Coastal Shores Inc. (CSI) was completely destroyed by Hurricane Fred on August 5, 2013.  At January…

A: Inventory: Inventory refers to the stock of goods purchased, utilized and maintained by the company…

Q: Pronghorn Company lost most of its inventory in a fire in December just before the year-end physical…

A: Net Purchases = Purchases for the year - Purchase returns= $295,600 - $27,900= $267,700Net sales =…

Q: Lily Company needs to determine the amount of inventory in its warehouse at the time that an…

A: Cost of goods available for sale = Beginning inventory + purchases Cost of goods sold = Sales -…

Q: On March 15, a fire destroyed MyCompany's entire retail inventory. The inventory on hand as of…

A: Cost of goods sold = Beginning inventory + Purchases + Freight in - Closing inventory

Q: A fire destroyed a warehouse of the Goren Group, Inc., on May 4, 2021. Accounting records on that…

A: Cost of Goods sold = Sales - Gross profit =$8,200,000-8,200,000*20%  = $6,560,000

Q: Over the past 3 years, the gross profit rate for Jini Company was 30%. Last week a fire destroyed…

A: Inventory destroyed = Beginning inventory + Net purchases - Cost of goods sold Cost of goods sold =…

Q: On November 21, 2024, a fire at Hodge Company's warehouse caused severe damage to its entire…

A: Cost of goods sold is the difference between cost of goods available for sale and the ending balance…

Q: A fire completely destroyed all the inventory of Glisan Lumber Yard on August 5, 20--. Fortunately,…

A: The gross profit is calculated as the difference between sales and cost of goods sold. The estimated…

Q: A fire destroyed the warehouse of Reed Enterprises, on August 31, 20Y1. The books and records of…

A: Gross profit is the difference between the sales and the cost of goods sold. The gross profit ratio…

Q: Crane Company lost all of its inventory in a fire on December 26, 2022. The accounting records…

A: The cost of goods sold is the formula used to compute the cost incurred on the goods sold during the…

Q: Muller Computers stores its inventory in a warehouse that burned to the ground in late November,…

A: Cost of goods sold = Sales - Gross profit where, Gross profit = Sales x Gross profit rate

Q: The Hibiscus Lodge is a trader in plastic ornaments. On January 31, 2012 a fire       destroyed a…

A: Inventory is one of the important current asset being used in business. Cost of goods sold means…

Q: On August 31, a hurricane destroyed a retail location of Vinny's Clothier including the entire…

A: Effective inventory management is important to the success of any business that sells physical…

Q: Marigold Inc.’s April 30 inventory was destroyed by the explosion of an underground oil tank.…

A: Gross Profit is profit earned on selling the goods, which is calculated by deducting Cost of goods…

Q: A substantial portion of inventory owned by Prentiss Sporting Goods was recently destroyed when the…

A: Hi student Since there are multiple subparts, we will answer only first three subparts.

Q: Confucius Bookstore's inventory is destroyed by a fire on September 5. The following data for the…

A: The inventory can be valued using various methods as LIFO, FIFO and weighted average method. The…

Q: Sheffield Inc.’s April 30 inventory was destroyed by the explosion of an underground oil tank.…

A: working note 1. Gross profit  margin  formula =Gross profit/Net sales * 100 Gross profit will be…

Q: Marigold Corporation's April 30 inventory was destroyed by fire. January 1 inventory was $164,900,…

A: The inventory valuation method used to evaluate the closing inventory and cost of goods sold. In…

Q: On March 17, 2021, a flood destroyed the entire inventory of Beatty Co. The following information is…

A:

Q: On September 22, 2016, a flood destroyed the entire merchandise inventory on hand in a warehouse…

A: Gross profit method:

Q: A substantial portion of inventory owned by Prentiss Sporting Goods was recently destroyed when the…

A: Inventory means the stock of goods in which the businessmen deals. Cost of goods sold means the…

Q: Southern Distributors, Incorporated, supplies ice cream shops with various toppings for making…

A: Gross profit is the difference between sales revenue and cost of goods sold. The cost of goods sold…

Q: All goods were completely destroyed except for partially damaged goods that normally sell for…

A: Calculation of Closing Inventory: Particulars Amount(P) Opening Inventory, January 1 P1,320,000…

Q: Swifty Corporation’s April 30 inventory was destroyed by fire. January 1 inventory was $159,400, and…

A: The cost of goods sold represents the total cost of the goods that are required in the production…

Q: Confucius Bookstore’s inventory is destroyed by a fire on September 5. The following data for the…

A:

Q: A fire completely destroyed the entire inventory of Printing Delight Co. on March 15, 20--.…

A: Part (1)   Calculation of the cost of goods sold for the time period Net Sales - Gross Profit =…

Q: A flood destroyed a company's warehouse contents on September 12. The following information was the…

A: The formual for ending inventory is as follows:

Q: Determine the inventory loss as a result of the fire, using the gross profit method. (Round answer…

A: Calculation of average Gross Profit Margin

Q: Blue Spruce Corporation's March 31 inventory was destroyed by fire. January 1 inventory was…

A: We assume that all the inventory of 31 March was destryed by the fire.

Q: Required: Calculate the amount of the insurance claim to be filed for the inventory destroyed in the…

A: The company takes the insurance policy on the inventory to protect the loss from the inventory…

Q: A fire wiped out Parvati Paper Company's Inventory. The insurance company will accept an estimate…

A: Ending inventory means the number of units left to be sold at the end of specified period.Ending…

Q: A fire completely destroyed all the inventory of Glisan Lumber Yard on August 5, 20- -. Fortunately,…

A: Gross profit = sales * gross profit percentage

Q: Wormold Industries suffered a fire in its warehouse on March 4, 2021. The warehouse was full of…

A: Gross profit method It is a method under which the historical gross profit percentage is applied to…

Q: A substantlal portion of inventory owned by Prentiss Sporting Goods was recently destroyed when the…

A: The gross profit is calculated as difference between sales and cost of goods sold.

Q: Tex. Hodge estimates that all usable damaged goods can be sold for $22,000. The following…

A: Gross profit is the difference between sales revenue and cost of goods sold. The cost of goods sold…

Q: Riverbed Inc.’s April 30 inventory was destroyed by the explosion of an underground oil tank.…

A: The ending inventory is the inventory that is left unsold in the business.

Property Insurance

Property insurance protects property from unforeseeable loss or damage and covers property owners' liability. Property insurance provides financial compensation to the property owner or renter in the event of damage or theft, as well as to someone other than the owner or renter if that person is injured on the property. Property insurance covers all risks of damage caused by theft, fire, flood, cyclones, lighting, and natural calamities, among other things. The primary goal of property insurance is to require the property owner to cover the loss. A monthly premium is paid to the insurance company, and in exchange, the insurance company pays for damage based on the agreement stated in the policy. Property insurance protects assets such as a vehicle, auto, car, rental home, house, and valuable property.