USE SEPARATE EXCEL ANSWER SHEET. On April 15, a bad day in many ways, a fire destroyed the entire inventory of a local retail store, except for damaged inventory ($10,000 cost) which was sold as scrap for $5,000 cash. The accounting records indicate the following: Sales Income at selling prices, Jan. 1 to April 15, $360,000 Inventory at cost, Jan. 1, $40,000 Purchases at cost, Jan. 1 to April 15, $280,000 Gross profit is 25% of cost Estimate the dollar loss to be reported to insurance using the gross profit method.