Estimate Inventory
the records of Florida Tools Shop received the following information related to the inventory destroyed in Hurricane Frances.
| Inventory, beginning of period | $300,000 |
| Purchases to date of hurricane | 140,000 |
| Net sales to date of hurricane | 885’000 |
| Gross Profit ratio | 55% |
The company needs to file a claim for lost inventory with its insurance company. What is the estimated value of the lost inventory?
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