Amtran Enterprises lost its entire inventory in a hurricane that occurred on May 31, 2010. Over the past five years, gross profit has averaged 32% of net sales. The company’s records reveal the following data for the month of May:

Requirements 1. Estimate the May 31 inventory, using the gross profit method.
2. Prepare the May income statement through gross profit for Amtran Enterprises.

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Beginning Inventory. Net Purchases.. Sales. Sales Returns and Allowances. Sales Discounts. $ 38,600 341,900 530,400 12,300 6,500