On February 2, 2013, a Fire Destroyed the Entire Inventory

Short Answer

On February 2, 2013, a fire destroyed the entire inventory of Blue Co. The following information was found in accounting records: Purchases, $280,000; Sales $460,000; beginning inventory, $80,000; 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 $360,000.
_____ b) The cost of goods sold as a percent of sales is 70%.
_____ c) The estimated cost of goods sold is $202,000.
_____ d) Estimated inventory lost in the fire is $44,000.
_____ e) Estimated gross margin for the period up to the date of the fire was $138,000.