"You Decide" EssayYou are the Orlando store manager for Kruge Enterprises. When you came in this morning, you found the front door ajar. Once Security had arrived and you eventually got inside, you discovered that most of your inventory had been stolen. In order to file a claim with your insurance company you need to estimate the amount of inventory you had yesterday at closing time. Unfortunately, Kruge Enterprises uses a periodic inventory system. How can you estimate your lost inventory amount?
What will be an ideal response?
One way to estimate the company's lost inventory, is to use its historical gross profit percentage. You can subtract that percentage from 100% to find the cost of goods sold percentage. For example, if the company's gross profit percentage has historically averaged 40%, then the CGS percentage would be 60%. Multiplying the CGS % by sales during the period will estimate the company's cost of goods sold to date. You can then use the cost of goods sold model to estimate the ending inventory:
Ending inventory = Beginning inventory + Net purchases - CGS.
You might also like to view...
PL/SQL code that automatically runs when a particular button is clicked on the screen is an example of a(n) ____.
A. package B. application trigger C. function D. procedure
The Revised Act takes the position that consolidations are, for all practical purposes, obsolete
a. True b. False Indicate whether the statement is true or false
Compound interest means that interest is calculated only on the principal amount
Indicate whether the statement is true or false
The ease with which parts can be replaced or evaluated is:
A) repeatability. B) serviceability. C) testability. D) functionality.