Question: L5 Products Company began April with inventory of 46 500 The
L5 Products Company began April with inventory of $46,500. The business made net purchases of $61,500 and had net sales of $104,600 before a fire destroyed the company’s inventory. For the past several years, L5 Products’ gross profit percentage has been 40%. Estimate the cost of the inventory destroyed by the fire. Identify another reason that owners and managers use the gross profit method to estimate inventory.
Relevant QuestionsLake Travis Marine Supply reported the following comparative income statements for the years ended June 30, 2014, and 2013:Lake Travis’s president and shareholders are thrilled by the company’s boost in sales and net ...Canton Trade Mart has recently had lackluster sales. The rate of inventory turnover has dropped, and the merchandise is gathering dust. At the same time, competition has forced Canton’s suppliers to lower the prices that ...Army-Navy Surplus began March 2014 with 75 camping stoves that cost $16 each. During the month, Army-Navy Surplus made the following purchases at cost:Army-Navy Surplus sold 318 stoves, and at March 31, the ending inventory ...Fisher Fine Coffees, Inc., reported the following items, listed in no particular order, at December 31, 2014 (in thousands):Income tax of 35% applies to all items. Prepare Fisher Fine Coffees’ multi- step income statement ...iLife, Inc., was set to report the following statement of retained earnings for the year ended December 31, 2014:iLife, Inc.Statement of Retained EarningsYear Ended December 31, 2014Retained earnings, December 31, 2013 ...
Post your question