Big Bang Co. sells dynamite and just had an unfortunate accident with an employee smoking in its warehouse. The employee, the inventory and the warehouse were part of one impressive light show but today exist no more. To honour the employee, the resulting crater will be filled with water and set up as a mini park with the employee's name. Big Bang did have insurance on the contents (inventory of dynamite) but the building as high risk (and crazy high premiums) was left uninsured. Since the employee broke a posted no smoking rule it has no liability for his death. Big Bang wants to submit an insurance claim for the lost inventory and has the following information in its records. It uses the periodic inventory system. Opening inventory (from last years financials) $12,000,000 Sales for this year (from Sales Journal) $70,000,000 Average gross profit percentage over the past five years 30% Purchases for the year (from the Purchases Journal) $80,000,000 Big Bang will submit a claim for: