1. An inventory taken the morning after a large theft discloses $30,000 of goods on hand as of March 12. The following additional data are available from the books:

Inventory on hand, March 1 $120,000

Purchases received, March 1 11 65,000

Sales (goods delivered to customers) 135,000

Past records indicate a gross profit percentage of 20%.

Required:

Using the gross profit method, estimate the inventory of goods on hand at the close of business on March 11 and determine the amount of the theft loss.