Bobbie Howell was at home when he received a call from the fire department telling him his store had burned. His business was a total loss. The insurance company asked him to prove his inventory loss. For the year, until the date of the fire, Bobbie’s company had sales of $900,000 and purchases of $560,000. Freight-in amounted to $27,400, and beginning inventory was $90,000. Bobbie’s always priced his goods to achieve a gross margin of 40 percent. Compute Bobbie’s estimated inventory loss. (Hint: Gross Profit Method).