Gross Profit Method
the Walnut Shop Is a Furniture Company

Gross profit method
The Walnut Shop is a furniture company that uses a periodic inventory system. On February 8, 2009, a fire destroyed all the furniture on display in the company's main showroom. Fortunately, $35,000 of the company's inventory was located in a separate warehouse and was not damaged by the fire.
Walnut Shop now is attempting to determine the cost of the merchandise destroyed in the fire from the following information:
Compute the following (show computations):
$$\begin{array} {| l | l | } \hline \text { Net sales during 2009, through February } 8 & \$ 450,000 \\\hline \text { Ending inventory, December 31, 2008 } & \$ 130,000 \\\hline \text { Purchases in 2009 through February } 8 & \$ 225,000 \\\hline \text { Historical rate of gross profit } & 45 \% \\\hline\end{array}$$ (a) The cost of goods available for sale through February 8, 2009.
$\$$ _______
(b) The cost of goods sold in 2009 through February 8.
$\$$ _______
(c) The estimated total inventory on hand on February 8, prior to the fire.
$\$$ ________
(d) The cost of the inventory lost in the fire.
$\$$ ________