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Problem - Suzuki Company lost all of its inventory in a fire on December 26, 2015. The accounting records showed the following gross profit data for November and December.
November
December (to 12/26)
Net sales
$603,871
$696,300
Beginning inventory
32,000
36,600
Purchases
391,300
424,600
Purchase returns and allowances
13,000
14,600
Purchase discounts
8,300
9,600
Freight-in
9,000
9,800
Ending inventory
?
Suzuki is fully insured for fire losses but must prepare a report for the insurance company.
Required - What is gross profit rate for the month of November?
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