Howard's Supply Co. suffered a fire loss on April 20, 2021. The company's last physical inventory was taken January 30, 2021, at which time the inventory totaled $220,000. Sales from January 30 to April 20 were $600,000 and purchases during that time were $450,000. Howard's consistently reports a 30% gross profit. The estimated inventory loss is:. (do not include $ or , in your answer) A. $490,000.
B. $238,000.
C. $250,000.
D. None of these answer choices are correct.

C. $250,000

Explanation:

Cost of goods sold=Sales -gross profit

Sales revenue=$600,000

Gross profit=sales revenue*gross profit %=$600,000*30%=$180,000

Cost of goods sold=$600,000-$180,000=$420,000

Cost of goods available for sale=Beginning inventory+purchases

beginning inventory=$220,000

purchases=$450,000

Cost of goods available for sale=$220,000+$450,000=$670,000

Lost inventory=cost of goods available-cost of goods sold

lost inventory=$670,000-$420,000=$250,000

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.

answer: it is a cellular phone