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on october 31, a fire destroyed pharaoh inc.’s entire retail inventory. on hand as of january 1 totaled $2680000. From january through the time of the fire, the company made purchases of $636000 and had sales of $1408000. Assuming the rate of gross profit to selling price is 40%, what is the approximate value of the inventory that was destroyed?

On October 31, afre destroyed Pharoah Inc.s entire retail inventory. The inventory on hand as of January 1 totaled $2680000.
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Answer #1
Approximate value of inventory destroyed
Inventory on January 1 $         26,80,000
Add:
Purchases up to date of fire $           6,36,000
Less:
Cost Of Goods Sold ($1408000*60%) $           8,44,800
Inventory Destroyed $         24,71,200
Correct Option: SECOND
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