If the Estimated Rate of Gross Profit Is 30%, What $~~~~~~~~~~~~~~\$ 125,000$

Multiple Choice

If the estimated rate of gross profit is 30%, what is the estimated cost of the merchandise inventory on September 30, based on the following data?? Sept. 1 Merchandise inventory (at cost) $~~~~~~~~~~~~~~\$ 125,000$
Sept. 1-30 Purchases, net (at cost) $~~~~~~~~~~~~~~~~~~~~~~~300,000$
Sept. 1-30 Sales $~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~150,000$

A) $320,000
B) $192,500
C) $275,000
D) $105,000