ok so this question I've been looking at for awhile now and still can't get. If someone could explain this to me that'd be awesome
Fitzerald Corp. uses a periodic inventory system. At the beginning of 1998 its inventory balanec was $25,000. During the first 4 months of 1998, net purchases amounted to $325,000 and net sales were $400,000. On May 1, 1998, a fire destroyed the company's warehouse and its entire inventory. The average gross profit percentage in recent years had been 30%. What is the estimated amount of Fitzgerald's inventory loss on May 1, 1998?
they say the answer is $60,000 but I have no idea how to get there. except one way which doesn't make any sense.