Compute patels estimated inventory loss

Assignment Help Financial Accounting

Reference no: EM13915134

David Patel was at home when he received a call from the fire department telling him his store had burned. His business was a total loss. The insurance company asked him to prove his inventory loss. For the year, until the date of the fire, Patel's company had sales of $450,000 and purchases of $280,000. Freight-in amounted to $13,700, and beginning inventory was $45,000. Patel always priced his goods to achieve a gross margin of 40 percent. Compute Patel's estimated inventory loss.

Reference no: EM13915134

Questions Cloud

Develop a null hypothesis and an alternative hypothesis : Develop a null hypothesis and an alternative hypothesis based on the data you have collected. Discuss why you have chosen the hypotheses you developed above. Be sure to discuss the concept of null hypothesis in your response

Brief explanation and calculations : Prepare the schedule that Gorskikov LLP would prepare for Ms. Lee at December 31, 2011, setting forth the amounts that would be available for the college fund under each of the above alternatives. Brief explanation and calculations.

Degree of leverages to calculate new ebit and new eps : lled capacity. In each case, what contributed the profit or loss (Operating and financial leverages). How will you use the degree of leverages to calculate new EBIT and new EPS? Now check with income statement the results are correct or not.

Wireless device requirements : Wireless Device Requirements

Compute patels estimated inventory loss : Freight-in amounted to $13,700, and beginning inventory was $45,000. Patel always priced his goods to achieve a gross margin of 40 percent. Compute Patel's estimated inventory loss.

Chefs tools-nose and tongue section : If you created the most memorable meal of your life, what sensory elements must be present to emphasize the connection between the chemical senses, emotional memories, and the brain?

Question regarding the outsourcing journey : Prepare a case study analysis of Case 12: LEGO Group: An Outsourcing Journey found in the Cases section of your digital book.

Compute the corrected operating income : Compute the corrected operating income for 2013 and 2014. What effect will the error have on operating income and stockholders' equity for 2015?

Riordan manufacturing service request process evaluation : Like any modern business, Riordan Manufacturing acknowledges the necessity of innovation. While the competition has computerized procedures, Riordan persists in manually processing invoices and records. The potential for this manufacturing giant d..

User Account

All Pages