On January 1, a store had inventory of $54,000. January
purchases were $43,000 and January sales were $80,000. On February
1 a fire destroyed most of the inventory. The rate of gross profit
was 25% of cost. Merchandise with a selling price of $8,000
remained undamaged after the fire. Compute the amount of the fire
loss, assuming the store had no insurance coverage.
Fire loss- |
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