Question: On July 8, a fire destroyed the entire merchandise inventory on hand of Larrenaga Wholesale Corporation. The following information is available: Sales, January 1 through

On July 8, a fire destroyed the entire merchandise inventory on hand of Larrenaga Wholesale Corporation. The following information is available:

Sales, January 1 through July 8 $ 685,000
Inventory, January 1 144,000
Purchases, January 1 through July 8 640,000
Gross profit ratio 29 %

What is the estimated inventory on July 8 immediately prior to the fire?

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