5) A fire destroyed all the inventory of a company during the month of June. Use the following
data to estimate the value of the company's ending inventory for June, assuming the gross
profit on sales is 25%. (10 points)
Inventory, June 1 460,000 Purchase discounts 8,400.00
Gross Purchases 840,000 Sales, net 1,175,000
Freight on purchases 14,000