The Pistons Company Had Its Entire Inventory Destroyed When a Fire

question 28

Essay

The Pistons Company had its entire inventory destroyed when a fire swept through the company's warehouse.Fortunately,the accounting records were locked in a fireproof safe and were not damaged.The following information for the period up to the date of the fire was taken from the accounting records:

(1)Assuming that the gross profit has averaged 28 percent of selling price,what is the estimated value of the inventory destroyed in the fire? Show all calculations in good form.
(2)Assuming that the markup percentage on cost is 36 percent,what is the estimated value of the inventory destroyed in the fire? Show all calculations in good form.

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Definitions:

Strategic Leadership

The ability of an organization's leaders to envision, maintain flexibility, think strategically, and work with others to initiate changes that will create a viable future for the organization.

Continuous Change

A constant, ongoing process of adapting and improving organizations, processes, or products in response to external or internal factors.

Organizational Strategies

Plans and actions taken by a company to achieve its goals and improve its competitive position.

Boards of Directors

Groups of elected individuals who represent shareholders and oversee the activities and strategic direction of a company.