The following information was taken from Shirley Inc.: Sales $275,000 BOY Inventory $30,000 EOY Inventory $18,000 Shirley Inc.’s gross margin is 20%. What amount represents Shirley’s
The following information was taken from Shirley Inc.:
Sales $275,000
BOY Inventory $30,000
EOY Inventory $18,000
Shirley Inc.’s gross margin is 20%. What amount represents Shirley’s purchases?
- $202,000
- $208,000
- $220,000
- $232,000
_____ 4. Mushroom Inc. had an explosion in its plan that destroyed most of its inventory. Its records show that beginning inventory was $40,000. Mushroom made purchases of $480,000 and sales of $620,000 during the year. Its normal gross profit percentage is 25%. It can sell some of its damaged inventory for $5,000. The insurance company will reimburse Mushroom for 70% of its loss. What amount should Mushroom reports as loss from the explosion on its financials?
- $50,000
- $35,000
- $18,000
- $15,000
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