Calculate the amount of inventory loss from the flood

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Reference no: EM131219296

On April 8, 2013, a flood destroyed the warehouse of Stuco Distributing Co. From the waterlogged records of the company, management was able to determine that the firm's gross profit ratio had averaged 40% for the past several years and that the inventory at the beginning of the year was $314,200. It also was determined that during the year until the date of the flood, sales had totaled $638,400 and purchases totaled $355,140.

Required:

Calculate the amount of inventory loss from the flood.

Reference no: EM131219296

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