A Company's Warehouse Contents Were Destroyed by a Flood on September

Multiple Choice

A company's warehouse contents were destroyed by a flood on September 12. The following information was the only information that was salvaged: 1. Inventory, beginning: $28,000
2) Purchases for the period: $17,000
3) Sales for the period: $55,000
4) Sales returns for the period: $700
The company's average gross profit ratio is 35%. What is the estimated cost of the lost inventory?

A) $25,995.
B) $9,705.
C) $44,000.
D) $45,000.
E) $29,250.