1. The following data is available from Maggie's accounting records for the three months ended March 31, 2016: Inventory at 1/1/2016 $650,000 3,200,000 4,500,000 25,000 . Purchases Net sales Purchase returns Markup on sales (gross margin as % of sales) 40% . Using the gross profit method, estimate the cost of the inventory at March 31, 2016 On May 9, 2016, a fire destroyed the entire uninsured merchandise inventory of Z-93 Company. You obtained the following data: 2. Inventory, 1/1/2016 Purchases, 1/1/2016 through 5/9/2016 20,000 70,000 80,000 25% .Sales, 1/1/2016 through 5/9/2016 Gross margin on sales percentage Calculate the estimated fire loss to report Z-93 Company's income statement for 2016