A company's warehouse was destroyed by tornado on March 15. The following information was the only information that was salvaged: 1. Inventory, beginning: $28,000 2. Purchases for the period: $17,000 3. Sales for the period: $55,000 4. Sales returns for the period: $700 The company's average gross profit ratio is 35%. What is the estimated cost of the lost inventory? A. $9,705 B. $25,995 C. $29,250 D. $44,000 E. $45,000