QUESTION #$2(6$ Marks, $12$ Minutes$)$

On March $20,2007$ a tornado destroyed the entire inventory of Sunshine Corporation located in Florida. An estimate of the amount of inventory that has been lost is needed for insurance purposes. The following information

is available:

Inventory on January $1$$$500,000$

Sales from January $1$ to March $202,600,000$

Sales discounts January $1$ to March $20100,000$

Purchases from January $1$ to March $202,000,000$

Purchase discounts January $1$ to March $20150,000$

Sunshine estimates its gross profit ratio to be $60\%$ based on historical records.

Required:

What is the estimated inventory for Sunshine Incorporated? Show all supporting calculations to receive full marks not just the answer.