Howard's Supply Co. suffered a fire loss on April 20, 2021. The company's last physical inventory was taken January 30, 2021, at which time the inventory totaled $231,000. Sales from January 30 to April 20 were $611,000 and purchases during that time were $461,000. Howard's consistently reports a 25% gross profit. The estimated inventory loss is: Multiple Choice $484,750. $221,750. $233,750. None of these answer choices are correct.

Answer :

Estimated inventory loss = $233,750

Explanation :

As per the data given in the question,

Inventory = $231,000

Purchases = $461,000

Cost of goods for sale (A) is

= $231,000 + $461,000

= $692,000

Sales = $611,000

Gross Profit = $611,000 × 25% = $152,750

Cost of goods Sold (B) is

= ($611,000 - $152,750)

= $458,250

So, Estimated inventory loss  is

= (A - B)

= ($692,000 - $258250)

= $233,750

We simply applied the above formula

muslims control the north africa during the period of 1500 up

to 1800. they made a barrier to prevent further european exploration from

entering the africa from the north. however, the dutch ware still able to move

toward the interior with having south africa as one of the routes leading to

the east for trading with asia.