An inventory taken the morning after a large theft (March 12) discloses $27,500 of goods on hand. The following additional data is available from the books:

Inventory on hand, March 1................................................. $ 42,000

Purchases received, March 1 11............................... 36,000

Sales (goods delivered to customers)........................... 67,500

Past records indicate that sales are made at 50% above cost.

Instructions Estimate the inventory of goods on hand at the close of business on March 11 by the gross profit method and determine the amount of the theft loss. Show appropriate titles for all amounts in your presentation.