Estimating Inventory Loss Using Gross Profit Method The accounting records of Butler Company reveal the following information. Before the company opened for business on July 20 , its assets were totally destroyed by flood. The insurance adjuster found that the average gross profit percentage for the past few years was 37%. Required a. Estimate the inventory destroyed assuming that the gross profit percentage was based on sales. - Note: Do not use a negative sign (-) with your answers. b. Estimate the inventory destroyed assuming that the gross profit percentage was based on cost of sales. - Note: Carry all decimals in calculations; round the final answer to the nearest dollar. - Note: Do not use a negative sign (-) with your answers