Comprehensive problem CP-6-8 Windy City Insurance Ltd. has received a fire-loss claim of 45,000 from

Comprehensive problem CP-6-8 Windy City Insurance Ltd. has received a fire-loss claim of 45,000 from Balton Corp, A fire destroyed Balton’s inventory on May 25, 2015. Bolton has average gross profit of 35%. You have obtained the following information:                       Inventory, May 1, 2015                                &
»Comprehensive problem CP-6-8 Windy City Insurance Ltd. has received a fire-loss claim of 45,000 from Balton Corp, A fire destroyed Balton’s inventory on May 25, 2015. Bolton has average gross profit of 35%. You have obtained the following information:                       Inventory, May 1, 2015                                            $  80,000                         Purchases, May 1- May 25                                   $ 150,000                         Sales, May 1 –May 25                                        $ 300,000 Required: Calculate the estimated amount of inventory lost in the fire. How reasonable is Balton’s claim Answer to question   The amount of inventory lost in the fire = $35,000 How reasonable is Balton's claim?    

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