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On August 29, Year 1, a fake flood destroyed the entire merchandise inventory on hand...

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Accounting

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On August 29, Year 1, a fake flood destroyed the entire merchandise inventory on hand in a warehouse owned by the Flash Sports Company. The following information is available from the records of the company's periodic inventory system: Inventory, January 1, Year 1 Net purchases, January 1 through August 29 Net Sales, January 1 through August 29 Gross profit ratio $ 35,000 90,000 150,000 25% Required: You were asked as the forensic accountant to estimate the cost of inventory destroyed in this fake flood using the gross profit method

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