Ted Smyth manages an electronics store. He suspects that some employees are stealing items from inventory. Determine the cost of the missing inventory. Th e following information is available from the accounting records:

Beginning inventory . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . $ 300,000

Sales . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . . . . . . 2,000,000

Net purchases . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,600,000

Actual ending inventory . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 450,000

Historical profit margin. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 30%