Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. the showroom of sundale furniture was flooded due

The showroom of Sundale Furniture was flooded due to a recent cyclone and its inventory...

60.1K

Verified Solution

Question

Accounting

The showroom of Sundale Furniture was flooded due to a recent cyclone and its inventory was totally destroyed. Their accounting records were damaged but the following information was salvaged.

Sales revenue (to date this period) $280 000 Beginning inventory (at retail) $50 000 Purchases (to date this period at retail) $430 000 Historical gross profit percentage 40%

Assuming the historical gross profit ratio is maintained the estimated cost of inventory lost in the flood is:

Group of answer choices

a. $80 000

b. $200 000

c. $60 000

d. $172 000

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Physics
1.2K views

3 a Two stable isotopes of lithium Li and Li have respective abundances of 7...

Accounting
1.2K views

Analyzing Financial Statements of United States Based Corporations Scenario Each student is to select a United States based...

Medical Sciences
1.2K views

Complete each sentence discussing the cardiac conduction system. Then place the sentences in the correct order...

Mechanical Engineering
1.2K views

This is problem 6-19 from El-Wakil’s Powerplant Technology book -- a 35,000 lbm/h double-effect evaporator receives motive...

Biology
1.2K views

According to this information some organs of the gastrointestinal tra Food is digested in the...

Physics
1.2K views

a 1 5 A c 1 0 A 37 In the circuit shown below each...

Physics
1.2K views

1 The acceleration due to gravity at a height 1 km above the earth is...

Geometry
1.2K views

Ex Find the equation of the quadratic function in 5 0 LO 5

Basic Math
1.2K views

A ball is thrown in the air from the top of a building Its height...

Accounting
1.2K views

1. Which of the following statements regarding realized income is CORRECT? A)...

Accounting
1.2K views

The engineering method of determining cost behavior is particularly useful for new activities or products....

Accounting
1.2K views

question 31 question 32 31 Cybil Baunt just...