The Navarre Company had a fire on February 10, 2014, that destroyed a major portion of its inventory. The salvaged accounting records contained the following information:
Sales, January 1 to February 10 ........................................ $ 350,600
Net merchandise purchased Jan. 1 to Feb. 10 ........................ 182,400
Additional information was determined from the 2073 annual report: Income statement:
Sales inventory ......................................... ...............$3,200,225
Cost of goods sold inventory .........................................1,760,575
Balance sheet:
Merchandise inventory .................................................. 294,100
Navarre was able to salvage inventory with a cost of $106,200.
Required:
Determine the amount of inventory lost by Navarre as a result of the fire. Navarre has a December 31 year-end, Round the gross profit ratio to the nearest whole percentage point.