Estimation of Fire Loss On September 28, 2007 a fire destroyed the entire merchandise inventory of the Carroll Corporation. The following information is available:
|
Sales, January 1—September 28, 2007 |
$540,000 |
|
Inventory, January 1, 2007 |
$150,000 |
|
Merchandise purchases, January 1—September 28, 2007 (including $60,000 of goods in transit on September 28, 2007, shipped FOB shipping point) |
$465,000 |
|
Markup percentage on cost |
20% |
Required
What is the estimated inventory on September 28, 2007 immediately prior to the fire?