Callahan Computers Stores Its Inventory in a Warehouse That Burned

question 105

Multiple Choice

Callahan Computers stores its inventory in a warehouse that burned to the ground in late November, 2012. Their sales office was at a different location. In order to file a claim with their insurance, the owners ask you to estimate the inventory in the warehouse. The following information is available: The company's Gross profit has historically been 40% of Net sales revenue. Estimate the value of the inventory destroyed in the fire using the Gross profit method.

• A)$369 950
• B)$528 550
• C)$388 450
• D)$410 000

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Definitions:

Cell Cycle

The series of events that take place in a cell leading to its growth, replication, and division into two daughter cells.

Cytosol

The aqueous component of the cytoplasm within a cell, where organelles are suspended and various cellular processes occur.

Cytoplasm

The material within a living cell, excluding the nucleus, made up of cytosol and organelles, where most cellular activities occur.

Nucleolus

A small, dense structure found within the nucleus of cells, primarily involved in the production of ribosomes.