When the Accessory Store was opened for business on the morning of March 10, it was discovered that thieves had broken in and stolen the store's entire inventory. The following information for the period January 1 through March 10 was available to establish the amount of loss:

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Under the assumption the store had earned an average \(38 \%\) gross profit on sales during the past five years, prepare a statement showing the estimated loss.

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January 1 merchandise inventory at cost Purchases.. $125,100 370,000 Purchases returns Transportation-in Sales Sales returns. 3,225 15,750 720,400 13,200