On September 22, 2016, a flood destroyed the entire merchandise inventory on hand in a warehouse owned by the Rocklin Sporting Goods Company. The following information is available from the records of the company's periodic inventory system: Required: Complete the below table to estimate the cost of inventory destroyed in the flood using the gross profit method.
Inventory - January 1, 2016 $147,000
Net purchases - January 1 through September 22 377,000
Net sales - January 1 through September 22 585,000
Gross profit ratio 25%
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