California Inc., through no fault of its own, lost an entire plant due to an earthquake on May 1, 2021. In preparing its insurance claim on the inventory loss, the company developed the following data: Inventory January 1, 2021, $300,000; sales and purchases from January 1, 2021, to May 1, 2021, $1,300,000 and $875,000, respectively. California consistently reports a 40% gross profit. The estimated inventory on May 1, 2021, is:

1 answer
Question:

California Inc., through no fault of its own, lost an entire plant due to an earthquake on May 1, 2021. In preparing its insurance claim on the inventory loss, the company developed the following data: Inventory January 1, 2021, $300,000; sales and purchases from January 1, 2021, to May 1, 2021, $1,300,000 and $875,000, respectively. California consistently reports a 40% gross profit. The estimated inventory on May 1, 2021, is:

Answers

Answer:The answer is: $395,000Explanation:To calculate the May 1 inventory we have to determine the cost of all goods available for sale:goods available for sale = beginning inventory + net purchasesgoods available for sale = $300,000 + $875,000 = $1,175,000 Then we must determine the cost of goods sold:COGS = net sales - (net sales x gross profit margin)COGS = $1,300,000  - ($1,300,000 x 40%) = $1,300,000 - $520,000 = $780,000Finally to calculate the May 1 inventory:May 1 inventory = goods available for sale - COGS = $1,175,000 - $780,000 = $395,000

Similar Solved Questions

1 answer

Write on 1.atomic orbital 2.bohr atom 3.dual nature of matter​

write on 1.atomic orbital 2.bohr atom 3.dual nature of matter​...
1 answer

Initially 100 milligrams of a radioactive substance was present. After 5 hours the mass had decreased by 2%. If the rate of decay is proportional to the amount of the substance present at time t, determine the half-life of the radioactive substance

Initially 100 milligrams of a radioactive substance was present. After 5 hours the mass had decreased by 2%. If the rate of decay is proportional to the amount of the substance present at time t, determine the half-life of the radioactive substance...
1 answer

Anyone to help with a research question?

Anyone to help with a research question?...
1 answer

The concept of yin and yang represented the balancing nature of a. Religion and state to Chinese society b. Good and evil in Chinese public life c. Male and female roles in the natural order. d. The wisdom of age and experience in the elderly

The concept of yin and yang represented the balancing nature of a. Religion and state to Chinese society b. Good and evil in Chinese public life c. Male and female roles in the natural order. d. The wisdom of age and experience in the elderly...
1 answer

Asnake eating a mouse B. beds ng on trees2. Corals reels are shelter for many small fish and invertebrates, but corals are not harmed by thepresence. What kind of relationship this?A CommentalismB. Mutualism3. What do you call a tapeworm inside the intestine of a wild pig?​

Asnake eating a mouse B. beds ng on trees2. Corals reels are shelter for many small fish and invertebrates, but corals are not harmed by thepresence. What kind of relationship this?A CommentalismB. Mutualism3. What do you call a tapeworm inside the intestine of a wild pig?​...
2 answers

Decision making process

decision making process...
1 answer

Psychologists who carefully watch the behavior of chimpanzee societies in the jungle are using a research method known as_______.

Psychologists who carefully watch the behavior of chimpanzee societies in the jungle are using a research method known as_______....
2 answers

15 POINTS IF YOU CAN ANSWER THIS CORRECTLY!!! Which equation shows a valid, practical step in solving 4√2x-8+4√2x+8=0?

15 POINTS IF YOU CAN ANSWER THIS CORRECTLY!!! Which equation shows a valid, practical step in solving 4√2x-8+4√2x+8=0?...
1 answer

9. Which is the graph of the function y = 3x?

9. Which is the graph of the function y = 3x?...
1 answer

Select the two reasons Columbus's crew threatened to mutiny.

Select the two reasons Columbus's crew threatened to mutiny....
1 answer

How is the density of water different from the densities of most other substances? Please in your own words!!!!

How is the density of water different from the densities of most other substances? Please in your own words!!!!...
1 answer

What was one effect of new British taxes on colonist?

What was one effect of new British taxes on colonist?...
1 answer

What is the rate of change of the following equation? y = x - 4

What is the rate of change of the following equation? y = x - 4...
2 answers

Can someone help me with these 3 questions. Thank you.

Can someone help me with these 3 questions. Thank you....
1 answer

Which of the following sets of numbers could be the lengths of the sides of a triangle? a. 3.5 cm, 7 cm, 10.5 cm b. 3.5 cm, 7 cm, 14 cm c. 3.5 cm, 3.5 cm, 3.5 cm d. 3.5 cm, 5 cm, 10 cm

Which of the following sets of numbers could be the lengths of the sides of a triangle? a. 3.5 cm, 7 cm, 10.5 cm b. 3.5 cm, 7 cm, 14 cm c. 3.5 cm, 3.5 cm, 3.5 cm d. 3.5 cm, 5 cm, 10 cm...
2 answers

Help me help me .....

Help me help me ........
1 answer

Napoleon makes Snowball an enemy of the people because

Napoleon makes Snowball an enemy of the people because...
1 answer

Need help Language arts

Need help Language arts...
2 answers

What was becoming more irrelevant during the Renaissance

What was becoming more irrelevant during the Renaissance...

-- 0.052581--