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NEW QUESTION: 1
Every-Day Clothing had a November 1 merchandise inventory balance of $45,000. It made purchases of $80,000 and recorded sales of $130,000, during November. Its estimated gross profit on sales was 25%. On November 30, the store was destroyed by fire. What was the value of the merchandise inventory loss?
A. $ 97,500
B. $ 27,500
C. $125,000
Answer: B
Explanation:
The cost of goods sold is equal to sales less the gross profit on sales, or $97,500 ($130,000
X (1 -.25)). The lost inventory will be estimated as inventory available at cost less the cost of goods sold.

NEW QUESTION: 2
Danny holds 1%, Edward 2% and Fozia 3% of the issued share capital of Vee Ltd. Which of these shareholders, acting alone or together, hold the minimum percentage to entitle them to require the company to circulate a written statement of their views to all those entitled to receive notice of the forthcoming annual general meeting?
A. Danny and Edward.
B. Fozia alone.
C. Edward and Fozia.
D. Danny and Fozia.
Answer: C


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