Franklin Company has experienced gross profit ratios for 2022, 2021, and 2020 of 33.00 %, 29.25%,...

Transcribed Image Text:

Franklin Company has experienced gross profit ratios for 2022, 2021, and 2020 of 33.00 %, 29.25%, and 32.00 %, respectively. On April 6, 2023, the firm's plant and all its inventory were destroyed by a tornado. Accounting records for 2023, which were available because they were stored in a protected vault, showed the following: Sales from January 1 through April 5. January 1 inventory amount Purchases of inventory from January 1 through April 5 $ 146, 180 63,310 118, 823 Required: Calculate the amount of the insurance claim to be filed for the inventory destroyed in the tornado. (Hint: Use the cost of goods sold model and a gross profit ratio that will result in the largest claim.) Note: Do not round intermediate calculations. Insurance claim Franklin Company has experienced gross profit ratios for 2022, 2021, and 2020 of 33.00 %, 29.25%, and 32.00 %, respectively. On April 6, 2023, the firm's plant and all its inventory were destroyed by a tornado. Accounting records for 2023, which were available because they were stored in a protected vault, showed the following: Sales from January 1 through April 5. January 1 inventory amount Purchases of inventory from January 1 through April 5 $ 146, 180 63,310 118, 823 Required: Calculate the amount of the insurance claim to be filed for the inventory destroyed in the tornado. (Hint: Use the cost of goods sold model and a gross profit ratio that will result in the largest claim.) Note: Do not round intermediate calculations. Insurance claim

Answer rating: 100% (QA)

Insurance claim 84192 EXPLANATION January 1 Inventory Ad... View the full answer