Padgitt Camera Store estimates its inventory by the gross profit method when prepar- ing monthly financial statements. For the past two years, gross profit has averaged 32% of net sales. Assume further that the company's inventory records for stores in the northwestern region reveal the following data (amounts in thousands): Inventory, iMarch 1 $ 292 Transactions during March: Purchases 6,585 Purchase discounts 149 Purchase returns 8 Sales 8,657 Sales returns 17 Reporting inventory items on the income statement and balance sheet (Obj. V Required 1. Estimate the March 31 inventory using the gross profit method. 2. Prepare the March income statement through gross profit for the Padgitt Camera Store stores in the northwestern region.