Brief Exercise 9-5 (Algo) Gross profit method [LO09-2] On February 26, a hurricane destroyed the entire inventory stored in a warehouse owned by the Rockport Corporation. The following information is available from the records of the company's periodic inventory system: beginning inventory, $260,000; purchases and net sales from the beginning of the year through February 26, $480,000 and $680,000, respectively; gross profit ratio, 20%. Estimate the cost of the inventory destroyed by the hurricane using the gross profit method. Beginning inventory Plus: Net purchases Cost of goods available for sale Less: Cost of goods sold: Net sales Less: Estimated gross profit Estimated cost of goods sold Estimated cost of inventory destroyed