Audio-Video estimates its inventory by the gross profit method when preparing monthly financial statements. For the past two years, gross profit has averaged \(22 \%\) of net sales. The company's inventory records reveal the following data (amounts in thousands):

Requirements 

1. Estimate the March 31 inventory using the gross profit method.

2. Prepare the March income statement through gross profit for Audio Video. 

Transcribed Image Text:

Inventory, March 1............ Transactions during March: Purchases........ Purchase discounts... Purchase returns Sales........... Sales returns..... $ 690 6,500 150 10 8,610 110