ABC Co., a retailer, uses a periodic inventory system. The following information is available from its accounts and records: Sales (from general ledger) Inventory (from general ledger*) Purchases (net of returns and discounts from general ledger) {:[$4","000","000],[$300","000]:} Gross profit ratio (based on consistent average over the $3,100,000 past 5 years) 25% This is the beginning of the year inventory balance as of January 1,20X9, based on a count. The manager arrived at the store on the morning of October 1,20X9, and found that a burglary had occurred and large amounts of valuable inventory had been stolen. A count showed remaining inventory on hand after the theft that had cost $45,000. ABC Co. plans to make a claim with its insurance company for the costs of this stolen inventory. Using the gross profit method, what is the estimated cost of the stolen inventory?