On February 2,2016,a Fire Destroyed the Entire Inventory of Orange

Short Answer

On February 2,2016,a fire destroyed the entire inventory of Orange Co.The following information was found in accounting records: Purchases,$420,000;Sales $690,000;beginning inventory,$120,000;average gross margin percentage during the past five years,30%.Based on the above information,indicate whether each of the following statements is true or false.
_____ a)The cost of goods available for sale is $540,000.
_____ b)The cost of goods sold as a percent of sales is 70%.
_____ c)The estimated cost of goods sold is $303,000.
_____ d)Estimated inventory lost in the fire is $66,000.
_____ e)Estimated gross margin for the period up to the date of the fire was $483,000.