On April 24 of the current year, The Memphis Pecan Company experienced a tornado that destroyed the company's entire inventory. At the beginning of April, the company reported beginning inventory of $228,650. Inventory purchased during April (until the date of the tornado) was $199,700. Sales for the month of April through April 24 were $644,400. Assuming the company's typical gross profit ratio is 50%, estimate the amount of inventory destroyed in the tornado.
A. $106,150
B. $322,200
C. $216,050
D. $158,738
E. $214,175
Answer: A
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Answer the following statement true (T) or false (F)