Herbert Florists 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 \(30 \%\); 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 Purchases. Purchases returns Transportation-in Sales Sales returns. $ 70,560 115,240 3,900 9,420 227,000 5,040