4. Vacation Properties began January with concession inventory of $48,000. The business made net purchases of concessions for $106,000 and had net sales of $200,000 before a fire destroyed its concession inventory. For the past several years, Vacation Properties’ gross profit percentage has been 40%. Estimate the cost of the concession inventory destroyed by the fire.

The estimated cost of the concession inventory destroyed by the fire is $34,000.

To estimate the cost of the concession inventory destroyed by the fire, we can use the gross profit percentage and the net sales amount.

The gross profit percentage is given as 40%, which means that the cost of goods sold (COGS) is 60% of the net sales amount. We can calculate the estimated COGS using this percentage.

Net Sales = $200,000

COGS = 60% of Net Sales = 0.6 * $200,000 = $120,000

Now, to estimate the cost of the concession inventory destroyed, we can subtract the COGS from the total inventory value:

Total Inventory Value = Beginning Inventory + Net Purchases

Beginning Inventory = $48,000

Net Purchases = $106,000

Total Inventory Value = $48,000 + $106,000 = $154,000

Cost of Inventory Destroyed = Total Inventory Value - COGS

Cost of Inventory Destroyed = $154,000 - $120,000 = $34,000

Therefore, the estimated cost of the concession inventory destroyed by the fire is $34,000.

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When distinguishing between a client, referral source, payer, and beneficiary, social workers can identify a client as an individual, family, group, organization, or community that:



A: Suggests that a person goes for services.



B: Provides funding for the services.



C: Benefits from the services.



D: Agrees to receive help.



E: None of the above.