CPA Question 07 Hat's accounting records showed the following: Inventory, January1 Purchases, January 1 through May 1 Sales, January 1 through May 1 Inventory not damaged by flood Gross profit percentage on sales $35,000 200,000 250,000 30,000 40% What amount of inventory was lost in the flood? O $150,0o0 $85,000 $105,000 $55,000