Estimate Inventory
the records of Florida Tools Shop received the following information related to the inventory destroyed in Hurricane Frances.
|
Inventory, beginning of period |
$300,000 |
|
Purchases to date of hurricane |
140,000 |
|
Net sales to date of hurricane |
885’000 |
|
Gross Profit ratio |
55% |
The company needs to file a claim for lost inventory with its insurance company. What is the estimated value of the lost inventory?