On September 22, 2016, a flood destroyed the entire merchandise inventory on hand in a warehouse owned by the Rocklin Sporting Goods Company. The following information is available from the records of the company's periodic inventory system: Required: Complete the below table to estimate the cost of inventory destroyed in the flood using the gross profit method.

Inventory - January 1, 2016 $147,000
Net purchases - January 1 through September 22 377,000
Net sales - January 1 through September 22 585,000
Gross profit ratio 25%

The cost of inventory destroyed in the flood using the gross profit method is $5,585,250

Explanation:

The cost of inventory destroyed in the flood using the gross profit method.

Sales                                                                                 22 585,000

Less Cost of Goods Sold :

Opening Stock                                     147,000

Add Purchases                               22 377,000

                                                        22524,000

Less Closing Stock (Balance)         (5,585,250)

Cost of Sales                                                                      (16,938,750)

Gross Profit                                                                           5,646,250

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

                                          hope it

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.