Question: Comprehensive problem CP-6-8 Windy City Insurance Ltd. has received a fire-loss claim of 45,000 from Balton Corp, A fire destroyed Balton's inventory on May 25,

Comprehensive problem CP-6-8

Windy City Insurance Ltd. has received a fire-loss claim of 45,000 from Balton Corp, A fire destroyed Balton's inventory on May 25, 2015. Bolton has average gross profit of 35%. You have obtained the following information:

Inventory, May 1, 2015$80,000

Purchases, May 1- May 25$ 150,000

Sales, May 1 -May 25$ 300,000

Required:

a.Calculate the estimated amount of inventory lost in the fire.

b.How reasonable is Balton's claim

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

The United States is considered a rich country because Americans can choose from an abundance of goods and services. How can there be scarcity in a land of abundance?

In have to do the work in this work sheet below. Can your fill in where every thing goes. Thank you. CP 68 Windy City Insurance Ltd. has received a fireloss claim of $45,000 from Balton Corp. A fire...

CP 68 Windy City Insurance Ltd. has received a fireloss claim of $45,000 from Balton Corp. A fire destroyed Baltons inventory on May 25, 2019. Balton has an average gross profit of 331/3 per cent....

Windy City Insurance Ltd. has received a fireloss claim of $45,000 from Balton Corp. A fire destroyed Baltons inventory on May 25, 2023. Balton has an average gross profit of 35%. You have obtained...

Windy City Insurance Ltd. has received a fire-loss claim of $45,000 from Balton Corp. A fire destroyed Baltons inventory on May 25, 2016. Balton has an average gross profit of 331/3 per cent. You...

Windy City Bakery makes three popular cakes: Cake 1, Cake 2, and Cake 3. Windy City Bakery has four bakers, Baker A, Baker B, Baker C, and Baker D. Baker A can make only Cakes 1 and 3. Baker B can...

Journal entries for the following events during january and the adjustments for January 31. CASE STUDY Account Balances as of December 31st Credit Balance Debit Balance $248,018 108,420 2,500 750...

IF YOU COPY ANOTHER CHEGG ANSWER TO THIS QUESTION I WILL GIVE YOU A THUMBS DOWN. Windy City Bakery makes three popular cakes: Cake 1, Cake 2, and Cake 3 . Windy City Bakery has four bakers, Baker A,...

CASE STUDY Events During January Event Date Description of Event Employees are paid monthly on the first business day of the month 1 January 3 for work done in the previous month. The total payroll...

Pone Descriptive Analytic Project Spring 2022 Task: Utilizing your assigned file only (see file 3. File Assignments), perform a descriptive analysis over the data that provides a comprehensive...

Record the daily transactions if appropriate, (some events may not involve journal entries), as general journal entries into Excel. Also, post these journal entries into t-accounts and then calculate...

Evaluate the performance of Community National Bank relative to peer banks using the data in Exhibits 3.2, 3.4, 3.7, 3.8, and 3.9. Did the bank perform above or below average in 2007? Did it operate...

To familiarize you with a spectrum of disabilities, you will create a portfolio of disabilities/illnesses that interest you. For each, you will include: 1. Definition of the disability/disorder 2....

Preferred shareholders receive dividends before the common shareholders and receive assets before the common shareholders if the corporation liquidates. True False

Use Solver to create a Sensitivity Report for question 14 at the end of Chapter 3, and answer the following questions: a. Is the solution degenerate? b. Is the solution unique? c. Suppose the profit...

Read the "Boeing" case study at the end of chapter 5 in the textbook. Create a PowerPoint presentation of 10-15 slides (including title and reference slides) that teaches one or more of the...

Consider the following LP problem: MIN: 5X1 + 3X2 + 4X3 Subject to: X1 + X2 + 2X3 2 5X1 + 3X2 + 2X3 1 X1, X2, X3 0 a. Use slack variables to rewrite this problem so that all its constraints are...

The financial statements of Starbucks Corporation are presented in Exhibits 1.261.28. The income tax note to those financial statements reveals the information regarding income taxes shown in Exhibit...

Hamad Corporation began operations on January 1, 2011. Recently the corporation has had several unusual accounting problems related to the presentation of its income statement for financial reporting...

Marketing and Sales Management Social media, commonly thought of as digital technology, offer a way for marketers to communicate one-on-one with consumers and measure the effects of those...

7. Find four examples that illustrate the statement: Beyond a certain point, open-ness regarding information and communication can become detrimental to relationships.

2. In this chapter, the reader should reflect on the following concepts:

1. To gain knowledge about the way information is stored in memory.