On February 2, Year 2, a Fire Destroyed the Entire

question 28

True/False

On February 2, Year 2, a fire destroyed the entire inventory of Orange Co. The following information was found in accounting records: purchases of $420,000, sales of $690,000, beginning inventory of $120,000, and average gross margin percentage of 30%. Based on the above information, indicate whether each of the following statements is true or false.________ a)The cost of goods available for sale is $540,000.________ b)The cost of goods sold as a percent of sales is 70%.________ c)The estimated cost of goods sold is $303,000.________ d)Estimated inventory lost in the fire is $66,000.________ e)Estimated gross margin for the period up to the date of the fire was $483,000.

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Definitions:

Organizational Behavior

The study of how individuals and groups act within organizations and how these entities interact with their external environment.

Process Losses

The reduction in efficiency or effectiveness in a group or process due to problems such as miscommunication, conflict, or lack of coordination.

Customer Service

The help and service given by an enterprise to customers or users of its goods or services.

Drive To Defend

A psychological or organizational impulse to protect oneself or the organization from threats or criticism.