Painting Supplies suffered a terrible tornado and its entire merchandise
Painting Supplies suffered a terrible tornado, and its entire merchandise inventory was destroyed. Painting Supplies needs to estimate its ending merchandise inventory to collect insurance. The company’s merchandise inventory records reveal-the following data:

1. Estimate the cost of the March 31 merchandise inventory, using the retail method. Assume Painting Supplies had net sales revenue of $ 1,200,000 during March. (Round the cost to retail ratio to the nearest percent.)
2. Prepare the March 2015 partial income statement through gross profit for PaintingSupplies.
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