Accounting help

On February 26 a hurricane destroyed the entire inventory stored in a warehouse owned by the Rockford Corporation. The following information is available from the records of the company's periodic inventory system: beginning inventory, $280,000; purchases and net sales from the beginning of the year through February 26, $520,000 and $720,000, respectively, gross profit ratio, 40%. Estimate the cost of the inventory destroyed by the hurricane using the gross profit method