A Company's Store Was Destroyed by an Earthquake on February

Essay

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:
$$\begin{array} { | l | l | } \hline \text { Beginning inventory, January 1: } & \$ 44,000 \\\hline \text { Purchases to date: } & \$ 198,000 \\\hline \text { Sales to date: } & \$ 310,000 \\\hline\end{array}$$ Historically,the company's gross profit ratio has been 30%.Estimate the value of the destroyed inventory using the gross profit method.