You own an electronics store with a merchandise book value of $245,000. You conduct a physical inventory and find the value to be $237,000. Your total sales between inventories totaled $360,000. Calculate the shrinkage as a percentage of sales.

Question

Carlie Schmitt

Mathematics

31 January, 00:12

You own an electronics store with a merchandise book value of $245,000. You conduct a physical inventory and find the value to be $237,000. Your total sales between inventories totaled $360,000. Calculate the shrinkage as a percentage of sales.

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Jovany Figueroa · Answer 1

0.22% shrinkage as a percent of sales.

To calculate shrinkage you subtract the physical inventory value from the book value.

245,000-237,000 = 800

The shrinkage was $800. To find the shrinkage as a percent of sales take the shrinkage value and divide it by the sales value to get shrinkage as a percentage of sales.

800 / 360,000 = 0.0022 ...

Multiply Decimal by 100 to get the percentage

100 * 0.0022 ... = 0.22%