A flood destroyed a companys warehouse contents on September 12. The following information was the only information that was salvaged:

1. Inventory, beginning: $28,900
2. Purchases for the period: $17,900
3. Sales for the period: $55,900
4. Sales returns for the period: $790

The company's average gross profit ratio is 31%. What is the estimated cost of the lost inventory using the gross profit method?

$46,800.00. $45,800.00. $29,715.90. $8,774.10. $32,292.00