On October 31, a Fire Destroyed PH Inc

question 74

Multiple Choice

On October 31, a fire destroyed PH Inc.'s entire retail inventory.The inventory on hand as of January 1 totaled $680,000.From January 1 through the time of the fire, the company made purchases of $165,000 and had sales of $360,000.Assuming the rate of gross profit to selling price is 40%, what is the approximate value of the inventory that was destroyed?

• A)$680,000.
• B)$673,000.
• C)$485,000.
• D)$629,000.

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Definitions:

Infra-red

A form of electromagnetic radiation with wavelengths longer than visible light but shorter than microwaves, used in a variety of applications from heating to communication and imaging.

Instrument Cluster Gauges

The collection of displays and indicators located on a vehicle's dashboard providing the driver with vital operational information.

Technology and Maintenance Council

An organization focused on the development of recommended practices and standards for the maintenance and technology of commercial vehicles.

Recommended Practice

Suggested methods or procedures that are considered to be effective and efficient in achieving a desired result.