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Whitewater Co. lost its entire inventory in a flash flood that occurred on August

Whitewater Co. lost its entire inventory in a flash flood that occurred on August 31, 20##. Review the recovered records for August in the Excel Template.

Requirements:

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  1. Estimate the August 31 inventory using the gross profit method.
  2. Prepare the August income statement through gross profit for Whitewater Co.
  3. Calculate the Inventory Turnover Ratio for Whitewater for years 2009 and 2010.
  4. Provide a reason why the Inventory Turnover has changed from the previous year.

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