Brader Supply wants to prepare interim financial statements for the first quarter of 1990. The company uses a periodic inventory system but would like to avoid making a physical count of inventory. During the last five years, the company's gross profit rate has averaged \(35 \%\); and the following information for the year's first quarter is available from its records:

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Use the gross profit method to prepare an estimate of the company's March 31 inventory.

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January 1 beginning inventory $116,250 Purchases. 275,200 Purchases returns. 2,550 Transportation-in 3,300 Sales Sales returns 435,500 6,400