On March 15,Stark Company's Inventory Was Destroyed by a Tornado

Multiple Choice

On March 15,Stark Company's inventory was destroyed by a tornado.The following was the only information salvaged: (1) Inventory,January 1: $31,000
(2) Purchases to Mar 15: $14,000
(3) Sales to Mar 15: $65,000
(4) Sales returns to Mar 15: $7,000
Stark's average gross profit ratio is 35%.What is the estimated value of the destroyed inventory?

A) $7,300.
B) $8,500.
C) $9,250.
D) $10,525.
E) $45,000.