On June 17,it Was Discovered That a Material Amount of Inventory

question 15

Essay

On June 17,it was discovered that a material amount of inventory had been stolen.A physical count discloses that $55,000 of merchandise was on hand as of June 17.The following additional data is available from the accounting records:

Records indicate that the company's gross profit has averaged 40 percent of selling prices.
Required:
Estimate the amount of loss due to theft.

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Definitions:

Portfolio Expected Return

Portfolio expected return is the weighted average of the expected returns of the assets contained within an investment portfolio.

Expected Returns

The predicted amount of profit or loss an investment is projected to generate, often based on historical data or statistical models.

Standard Deviation

A statistical measure of the dispersion or variability in a set of data points, often used to gauge the risk associated with a financial asset.

Good Economy

A state of economic health in which a nation experiences growth, low unemployment, and increasing wealth among its population.