Problem 6-13A Sweeney Stores estimates its inventory by the gross margin method when preparing monthly financial statements (Sweeney Stores uses the periodic method otherwise). For the past two years, gross margin has averaged 45 percent of net sales. The business's inventory records for its stores reveal the following data: Excel Spreadsheet Template Estimating inventory by the gross margin method, preparing the income statement Inventory: July 1, 2017 Transactions during July: 240,000 2. Gross margin, $5,006,250 Purchases Purchases returns Sales Sales returns 7,890,000 230,000 11,250,000 125,000 Required 1. Estimate the July 31, 2017, inventory using the gross margin method. 2. Prepare the July 2017 income statement through gross margin for Sweeney Stores