On March 15, a Fire Destroyed Interlock Company's Entire Retail

question 56

Multiple Choice

On March 15, a fire destroyed Interlock Company's entire retail inventory.The inventory on hand as of January 1 totaled $1,650,000.From January 1 through the time of the fire, the company made purchases of $683,000, incurred freight-in of $78,000, and had sales of $1,210,000.Assuming the rate of gross profit to selling price is 30%, what is the approximate value of the inventory that was destroyed?

• A)$2,048,000.
• B)$1,486,000.
• C)$1,564,000.
• D)$2,411,000.

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Definitions:

Utopian Communities

Ideal communities that offered innovative social and economic relationships to those who were interested in achieving salvation.

Nineteenth Century

The period of time from January 1, 1801, to December 31, 1900, marking the 19th century in the Gregorian calendar.

Thomas More

A 16th-century English statesman and author, best known for his book "Utopia" and for his refusal to acknowledge King Henry VIII as head of the Church of England.

Utopia

An imaginary and idealized society where social and political systems work perfectly and citizens live in harmony and prosperity.