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For the last several years Conway Corporation has operated with a gross profit rate of 40%. On January 1 of the current year, the company

For the last several years Conway Corporation has operated with a gross profit rate of 40%. On January 1 of the current year, the company had on hand inventory with a cost of $600,000. Purchases of merchandise during January amounted to $150,000, and sales for the month were $360,000. Using the gross profit method, what is the estimated inventory at January 31?

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