Determine the estimated inventory loss due to the fire

Assignment Help Accounting Basics
Reference no: EM132132805

Question - On May 15, 2016 the Smoky Bear Company inventory storage facility was completely destroyed in a fire. Offsite accounting records reflect the normal gross profit rate is 40% of sales. Sales to the date of the fine were $1,650,000. The April 30, 2016 inventory value was $800,000. Two purchases were made during May, before the fire, for the values of $500,000 and $800,000.

Using the Gross Profit Method determine the estimated inventory loss due to the fire.

Reference no: EM132132805

Questions Cloud

Heart association plans install free blood pressure testing : The Heart Association plans install a free blood pressure testing booth at the Palouse mall for a week. What is the average number of people in the system?
Prepare the adjusting entries and post entries to accounts : On October 3rd received the September utilities bill for $188. Prepare the adjusting entries and post entries to accounts
What insights or perspectives could economists add : Why is or is not addiction, or the war on drugs more broadly, an appropriate topic for health economists to study?
How do bribery and corruption influence the economy : How do bribery and corruption influence the economy negatively? Answer and explain three major impacts.
Determine the estimated inventory loss due to the fire : The April 30, 2016 inventory value was $800,000. Using the Gross Profit Method determine the estimated inventory loss due to the fire
Regions of conflict or war : The benefits of having NGO's personnel in such regions outweigh the risks?
Describe each form of price discrimination : As an alternative to uniform pricing a monopolist may engage in price discrimination. There are three general forms. Describe each form of price discrimination.
Understand from motivation and contingency theories : What you understand from Motivation and Contingency Theories with proper explanation and with proper reference.
Analyze the economic effect on various industries : Analyze the economic effect on various industries in the US as well as other countries if a Tariff (or tax) or 30% is imposed on imports from China.

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd