California Inc., through no fault of its own, lost an entire plant due to an earthquake on May 1, 2018. In preparing its insurance claim on the inventory loss, the company developed the following data: Inventory January 1, 2018, $300,000; sales and purchases from January 1, 2018, to May 1, 2018, $1,300,000 and $875,000, respectively. California consistently reports a 40% gross profit. The estimated inventory on May 1, 2018, is:
A) $302,500.
B) $360,000.
C) $395,000.
D) $455,000.

Question

Quizplus · Accepted Answer

11ea937b_3623_87b6_a419_6dc5ba2c124f_TB2599_00