You are called by the CFO of Dolphin Co. on March 9 and asked to prepare a claim for insurance as a result of a theft that took place the night before. You suggest that an inventory be taken immediately. The following data are available.

Inventory, March 1 ................$ 78,000

Purchases—goods placed in stock March 1–9 ..... 112,000

Sales—goods delivered to customers (gross) ...... 91,000

Sales returns—goods returned to stock ......... 3,000

Your client reports that the goods on hand on March 9 cost $24,000, but you determine that this figure includes goods of $7,000 received on a consignment basis. Your past records show that sales are made at approximately 20% over cost. Dolphin’s insurance covers only goods owned.

Instructions

Compute the claim against the insurance company.