Hudson's Bay Company (HBC) is Canada's largest diversified general merchandise retailer, with over 600 retail locations and

Question:

Hudson's Bay Company (HBC) is Canada's largest diversified general merchandise retailer, with over 600 retail locations and nearly 60,000 associates located in every province in Canada. HBC's two banners are The Bay and Home Outfitters. In 2014, assume that HBC reported Cost of Goods sold of $11,571 million, for the current year of $3,259 million, and for the previous year (2013) of $3,641 million.
Required:
If you knew that the cost of inventory purchases was $11,289 million, could you estimate the cost of shrinkage during the year? If so, prepare the estimate and, if not, explain why not.
Ending Inventory
The ending inventory is the amount of inventory that a business is required to present on its balance sheet. It can be calculated using the ending inventory formula Ending Inventory Formula =...