Sammi Company needs to determine the amount of inventory in its warehouse at the time that an earthquake destroyed it. Sammi’s gross profit percentage averaged 28% over the last three years. Sammi began the current year with inventory of $ 657,400. Its net purchases were $ 3,498,000 and net sales were $ 4,336,000 during the year, before the earthquake occurred. Use the gross profit method to estimate the inventory on hand on the date of the earthquake.