4 On September 22, 2018, a flood destroyed the entire merchandise inventory on hand in a warehouse owned by the Rocklin Sporting Goods Company. The following information is available from the records of the company's periodic inventory system: 2 polnts Skipped Inventory, January 1, 2018 Net purchases, January 1 through September 22 Net sales, January 1 through September 22 Gross profit ratio $158,000 388,000 640,000 25% ook Hint Required: Complete the below table to estimate the cost of inventory destroyed in the flood using the gross profit method. Print References Beginning inventory Plus: Net purchases Cost of goods available for sale Less: Cost of goods sold: Net sales Less: Estimated gross profit Estimated cost of goods sold 0 Estimated cost of inventory destroyed $ 0 National Distributing Company uses a periodic inventory system to track its merchandise inventory and the gross profit method to estimate ending inventory and cost of goods sold for interim periods. Net purchases for the month of August were $46,000. The July 31 and August 31, 2018, financial statements contained the following information: 2 polnts Skipped Income Statements For the Months Ending August 31, July 31, 2018 2018 ook $60,000 $50,000 Net sales Print Balance Sheets At July 31, 2018 August 31, 2018 Assets: References Merchandise inventory $43,000 $42,000 Required: Determine the company's cost percentage. Cost percentage LO