A company's store was destroyed by an earthquake on February 10 of the current year. The only information for the current period that could be salvaged included the following:Beginning inventory, January 1:$44,000Purchases to date:$198,000Sales to date:$310,000Historically, the company's gross profit ratio has been 30%. Estimate the value of the destroyed inventory using the gross profit method.
What will be an ideal response?
| Beginning Inventory | $44,000 |
| Purchases | 198,000 |
| Goods available for sale | $242,000 |
| COGS ($310,000 * 70%) | 217,000 |
| Estimated Inventory at 2/10 | $25,000 |
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