Sara Company's accounting records indicated the following information: Inventory, 1/1/20 $ 900,000 Purchases during 2020

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answerhappygod
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Sara Company's accounting records indicated the following information: Inventory, 1/1/20 $ 900,000 Purchases during 2020

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Sara Company's accounting records indicated the following
information: Inventory, 1/1/20 $ 900,000 Purchases during 2020
4,500,000 Sales during 2020 5,700,000 A physical inventory taken on
December 31, 2020, resulted in an ending inventory of $1,050,000.
Sara's gross profit on sales has remained constant at 25% in recent
years. Sara suspects a new employee may have taken some inventory.
At December 31, 2020, what is the estimated cost of missing
inventory?
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