FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Coastal Shores Inc. (CSI) was completely destroyed by Hurricane Fred on August 5, 2013. At January 1, CSI reported an inventory of $170,000. Sales from January 1, 2013, to August 5, 2013, totaled $480,000 and purchases totaled $195,000 during that time. CSI normally shows a gross profit percentage of 40%. The estimated inventory loss due to Hurricane Fred would be:
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- On 1st Jan 2006, a business had inventory of $19,000. During the month, sales totalled $32,500 and purchases $24,000. On 31st Jan 2006 a fire destroyed some of the inventory. The undamaged goods in inventory were valued at $11,000. The business operates with a standard gross profit margin of 30%. Based on this information, what is the cost of the inventory destroyed in the fire?arrow_forwardts) A tornado recently destroyed all but $1,305,000 of Orr Corp.'s inventory. Beginning inventory for the period was $2,175,000 and another $5,720,000 was purchased during the year. How much inventory was destroyed, assuming that they had a cost markup of 40% and sales of $9,152,000? Please round your calculations to 2 decimal places! O $92,080 O $562,755 O $1,397,080 O $2,403,800arrow_forwardProofSmart Inc., a supplier of home insulation materials, was burned down in a recent fire. From the remains of what used to be the accounting ledger, the following information was recovered: Inventory Gross Margin Inventory Turns 13 10 11 14 2006 $2,367,121 42% 11 Prior to the fire, ProofSmart saw a sales growth of 48% in 2007, a record performance for the 18-year-old company. (NOTE: Gross margin is defined as 1 - (COGS/ Sales).) What was the inventory turns for 2007? Choose the answer closest to the correct answer. 15 12 2007 $2,418,257 45 % [unreadable] Cannot be determined from the given data. None of these 2arrow_forward
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