E. Gross Profit Method An inventory taken by Peace Hall Company the morning of November 01 after a large theft discloses $10,000 of goods on hand. The to goods on hand. The following additional data is available from the books: Inventory on hand, October 01 Purchases received from October 01 to 31 Sales (delivered to customers) October 01 to 31 $ 30,000 90,000 100,000 Past records indicate that the gross profit is 25% of sales. Estimate the inventory of goods on hand at the close of business on October 31 by the gross profit method and determine the amount of the theft loss