Question

Use gross profit ratio to calculate inventory loss. On April 8, 2013, a flood destroyed the warehouse of Stuco Distributing Co. From the waterlogged records of the company, management was able to determine that the firm's gross profit ratio had averaged 40% for the past several years and that the inventory at the beginning of the year was $314,200. It also was determined that during the year until the date of the flood, sales had totaled $638,400 and purchases totaled $355,140.

Required:
Calculate the amount of inventory loss from the flood.



$1.99
Sales1
Views243
Comments0
  • CreatedOctober 05, 2013
  • Files Included
Post your question
5000