(Solution) - Windy City Insurance Ltd has received a fire loss claim of -(2025 Original AI-Free Solution)

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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, 2016. Balton has an average gross profit of 331/3 per cent. You have obtained the following information:
Inventory, May 1, 2016
Purchases, May 1 - May 25
Sales, May 1 - May 25
$ 80,000
150,000
300,000
Required:
1. Calculate the estimated amount of inventory lost in the fire.
2. How reasonable is Balton's claim?