Sundance Marine Supply, Inc., lost its entire inventory in a hurricane that occurred on March 31, 2018. Over the past five years, gross profit has averaged 35 percent of net sales. The company’s records reveal the following data for the month of March:

Beginning Inventory..........................................................................................$ 39,421
Net Purchases....................................................................................................342,168
Net Sales.............................................................................................................541,600

Requirements

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

2. Prepare the March income statement through gross profit for Sundance Marine Supply, Inc.